A Model Development of Perishable Product to Minimize Total Supply Chain Cost on Fresh Food and Frozen Product Sales on The Trains

Abstract

The inventory system has a function as an act of planning, implementing, controlling the flow and storage of a product and information effectively and efficiently in order to fulfill customer demand. However, there are differences between inventory system policies on non-perishable products and perishable products. In the perishable product, special handling is needed in storage by considering the shelf life and storage time to prevent damage or decay. Accuracy in designing inventories is a suitable solution to reduce the occurrence of expired products and unfulfilled customer demand due to a lost sale. The case study used was in food sales activities on the train. Products sold consist of two categories: fresh food (8 hours) and frozen food (30 days). Travel time for each train is between 8 hours and 14 hours. On each trip, refilling is done at the location specified for each product category and each train. The refilling process aims to reduce the occurrence of food damage and decay during the trip. Thus, this paper will discuss the development of an inventory system model in a perishable product that aims to minimize the total supply chain costs by considering multiproduct, fixed lifetime, and probabilistic lead time.