Perishability

Perishability is a characteristic of certain goods and assets that have a limited useful life and deteriorate in quality or value over time. Perishable items cannot be stored indefinitely without loss of safety, quality, or usefulness, unlike durable goods. Perishability is a concern in economics, supply chain management, retail, and service operations because it creates time sensitivity in availability and pricing.

Causes of perishability include biological, chemical, and physical processes such as microbial growth, enzymatic changes, oxidation, moisture loss, or exposure to heat or light. This leads to spoiled food, expired medicines, faded flowers, and other forms of waste. The rate of decay depends on environmental conditions and intrinsic product properties. Measurement often uses shelf life, use-by or best-by dates, and remaining useful life estimates.

In goods, perishability affects inventory management and forecasting. Firms aim to maximize turnover and minimize spoilage through demand forecasting, just-in-time replenishment, proper storage, and packaging innovations such as refrigeration, controlled atmospheres, and barrier materials. In services, perishability refers to the inability to store unused capacity: a booked airline seat or hotel room that goes unsold cannot be saved for later, influencing pricing, capacity planning, and revenue management.

Environmental and regulatory considerations include food safety standards and expiration labeling. Strategies to mitigate perishability focus on extending usable life, reducing handling, and improving traceability. Distinctions are often drawn between perishable, semi-perishable, and non-perishable goods, with perishability remaining a central concern in logistics and operations.