Design of Supply Chain Network Model for Perishable Products with Stochastic Demand: An Optimized Model

Document Type: Original Manuscript

Authors

1 College of Engineering and Technology, Wolkite University, Wolkite, Ethiopia.

2 Faculty of Mechanical and Industrial Engineering, Bahir Dar Institute of Technology, Bahir Dar University, Bahir Dar, Ethiopia.

10.22094/joie.2019.563130.1551

Abstract

Supply chain network design in perishable product has become a challenging task due to its short life time, spoilage of product in degradation nature and stochastic market demand. This paper focused on designing and optimizing model for perishable product in stochastic demand, which comprises multiple levels from producer, local collector, wholesaler and retailers. The ultimate goal is to optimize availability and net profit of all members in supply chain network model for avocado fruit under stochastic demand. The network model has considered the quality deterioration rate of the product with increased order of transportation time. The validity of developed model was tested with data collected from avocado supply chain network in Ethiopian market.

Graphical Abstract

Design of Supply Chain Network Model for Perishable Products with Stochastic Demand: An Optimized Model

Highlights

  • Supply chain network design for perishable product under stochastic demand
  • Mathematical model is used in order to model the problem
  • Maximizing the availability of perishable products
  • Net profit for supply chain network was optimized

Keywords

Main Subjects


Ahumada, O., & Villalobos, J. R. (2009). Application of planning models in the agri-food supply chain: A review. European Journal of Operational Research, 196(1), 1-20.

Asgari, N., Farahani, R. Z., Rashidi, B., Hannaneh, & Sajadieh, M. (2013). Developing model-based software to optimise wheat storage and transportation: A real-world application. Applied Soft Computing, 13(2), 1074-1084.

Baghalian, A., Rezapour, S., & Farahani, R. Z. (2013). Robust supply chain network design with service level against disruptions and demand uncertainties: A real-life case. European Journal of Operational Research, 227(1), 199-215.

Beliën, J., & Forcé, H. (2012). Supply chain management of blood products: A literature review. European Journal of Operational Research, 217(1), 1-16.

Blackburn, J., & Scudder, G. (2009). Supply chain strategies for perishable products: the case of fresh produce. Production and Operations Management, 18(2), 129-137.

Boehlje, M. (1999). Structural changes in the agricultural industries: How do we measure, analyze and understand them? American Journal of Agricultural Economics, 81(5), 1028-1041.

Chen, X., & Zhong, C.-y. (2013). An Improved Genetic Algorithm for Location Problem of Logistic Distribution Center for Perishable Products. Paper presented at the International Asia Conference on Industrial Engineering and Management Innovation (IEMI2012) Proceedings.

Cho, M., Fan, M., & Zhou, Y.-P. (2009). Strategic consumer response to dynamic pricing of perishable products. Consumer-Driven Demand and Operations Management Models, 131, 435-458.

Christopher, M. (2016). Logistics & supply chain management: Pearson UK.

Curhan, R. C. (1972). The relationship between shelf space and unit sales in supermarkets. Journal of Marketing Research, 9(4), 406-412.

Dabbene, F., Gay, P., & Sacco, N. (2008). Optimisation of fresh-food supply chains in uncertain environments, Part I: Background and methodology. Biosystems Engineering, 99(3), 348-359.

Desmet, P., & Renaudin, V. (1998). Estimation of product category sales responsiveness to allocated shelf space. International Journal of Research in Marketing, 15(5), 443-457.

Emana, B., & Gebremedhin, H. (2007). Constraints and opportunities of horticulture production and marketing in eastern Ethiopia. Dry land coordination group (DCG) report, 46.

Goyal, S. K., & Giri, B. C. (2001). Recent trends in modeling of deteriorating inventory. European Journal of Operational Research, 134(1), 1-16.

Hsueh, C.-F., & Chang, M.-S. (2010). A model for intelligent transportation of perishable products. International Journal of Intelligent Transportation Systems Research, 8(1), 36-41.

Kader, A. A. (2004). Increasing food availability by reducing postharvest losses of fresh produce. Paper presented at the V International Postharvest Symposium 682.

Ma, J., & Tu, Y. (2016). Supply Chain Network Equilibrium Model for Perishable Products Based on Retailers' Utility. Paper presented at the WHICEB.

Mandal, B. a., & Phaujdar, S. (1989). An inventory model for deteriorating items and stock-dependent consumption rate. Journal of the Operational Research Society, 40(5), 483-488.

Nahmias, S. (2011). Perishable inventory systems (Vol. 160): Springer Science & Business Media.

Rezaeian, J., Haghayegh, S., & Mahdavi, I. (2016). Designing an integrated production/distribution and inventory planning model of fixed-life perishable products. Journal of Optimization in Industrial Engineering, 9(19), 47-60.

Rong, A., Akkerman, R., & Grunow, M. (2011). An optimization approach for managing fresh food quality throughout the supply chain. International Journal of Production Economics, 131(1), 421-429.

Sajadieh, M. S., Thorstenson, A., & Jokar, M. R. A. (2010). An integrated vendor–buyer model with stock-dependent demand. Transportation Research Part E: Logistics and Transportation Review, 46(6), 963-974.

Salin, V. (1998). Information technology in agri-food supply chains. The International Food and Agribusiness Management Review, 1(3), 329-334.

Shumeta, Z. (2010). Avocado production and marketing in Southwestern Ethiopia. Trends in Agricultural Economics, 3(4), 190-206.

Swami, S., & Shah, J. (2013). Channel coordination in green supply chain management. Journal of the Operational Research Society, 64(3), 336-351.

Tefera, A. (2008). Market value chain analysis of fruits in North-East Ethiopia:The case of Habru district. In Conference on Completed Crops Research Activities, 1.

Van Landeghem, H., & Vanmaele, H. (2002). Robust planning: a new paradigm for demand chain planning. Journal of operations management, 20(6), 769-783.

Wang, X., & Li, D. (2012). A dynamic product quality evaluation based pricing model for perishable food supply chains. Omega, 40(6), 906-917.

Widodo, K. H., Nagasawa, H., Morizawa, K., & Ota, M. (2006). A periodical flowering–harvesting model for delivering agricultural fresh products. European Journal of Operational Research, 170(1), 24-43.