Optimization Methods for Fresh-Cut Flower Retail Inventory Management
DOI:
https://doi.org/10.54097/x1z9dd56Keywords:
Cut-flower retail, Inventory management, Inventory cost control, Demand forecasting, Optimization methodAbstract
As a special category of fresh produce, fresh-cut flowers are characterized by high perishability, short shelf life, pronounced seasonality, and volatile market demand, making traditional inventory management methods inadequate for addressing the stochastic nature of floral sales. This study examines the current practices of inventory management in the cut-flower retail sector and identifies critical challenges, including excessive product deterioration, high holding costs, and inaccurate demand forecasting. Adopting the newsvendor model as the core analytical framework and incorporating realistic operational scenarios, this paper develops a demand modeling approach aimed at reducing inventory loss and operating costs while enhancing management efficiency and market competitiveness. The findings offer actionable managerial insights for fresh-cut flower retailers.
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