Optimizing the tactical planning in the Fast Moving Consumer Goods industry considering shelf-life restrictions

Elzakker, M. A. H. van; Zondervan, Edwin; Raikar, N. B.; Hoogland, Hans; Grossmann, Ignacio E.

doi:10.1016/j.compchemeng.2014.01.020

Cited by 13 publications

(7 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Coelho and Laporte (2014) integrate an age tracking approach to the IRP of a perishable product with a fixed shelf life. The age tracking approach ensures to distinguish products according to their shelf lives and has also been used in the literature for other logistics problems such as inventory problems (Haijema, 2013), and production and distribution problems (Rong et al, 2011;Van Elzakker et al, 2014). Jia et al (2014) incorporate quality time windows (shelf life limit) to the IRP of a perishable product with the same objective as the age tracking approach: controlling deteriorating item's quality which has a fixed shelf life.…”

Section: Related Literature Reviewmentioning

confidence: 99%

Modeling an Inventory Routing Problem for perishable products with environmental considerations and demand uncertainty

Soysal

Bloemhof-Ruwaard

Haijema

et al. 2015

International Journal of Production Economics

170

View full text Add to dashboard Cite

Section: Related Literature Reviewmentioning

confidence: 99%

Modeling an Inventory Routing Problem for perishable products with environmental considerations and demand uncertainty

Soysal

Bloemhof-Ruwaard

Haijema

et al. 2015

International Journal of Production Economics

170

View full text Add to dashboard Cite

“…They developed a new approach to increasing the level of service of distribution centers and the inventory of the total value chain. Van Elzakker et al ( 2014 ) presented a tactical plan for the industry to reduce the rapid consumption industry using a mixed integer model. They proposed both direct and indirect methods and concluded that the indirect method leads to the depletion of inventory in the warehouse before the period of their corruption.…”

Section: Literature Reviewmentioning

confidence: 99%

Modeling the supply chain network in the fast-moving consumer goods industry during COVID-19 pandemic

et al. 2023

View full text Add to dashboard Cite

The outbreak of the COVID-19 pandemic in recent years has raised serious concerns about the distribution of fast-moving consumer goods products, given the freshness of their use. On the one hand, the distribution of fast-moving consumer goods with multiple vehicles has led to maintaining the freshness of items at the supply chain level, and on the other hand, it involves the high costs of using vehicles. Congestion of vehicles and drivers in the distribution of items has also increased the possibility of COVID-19 transmission. The importance of the above issue has led to the modeling of a multi-level supply chain problem in the FMCG industry by considering the freshness of items to reduce COVID-19 transmission. The most important issue considered in this article is to send fresh food in the shortest possible time to customers who cannot go to stores and wait in line to buy items in the conditions of Covid-19. Therefore, the designed model provides the possibility for customers to receive fresh food in addition to reducing costs and also reduce the possibility of contracting Covid-19. Designed supply chain network levels include suppliers of raw materials, manufacturers of consumer goods, distributors and end customers. In order to optimize the objectives of the problem, including minimizing the total costs of supply chain network design and maximizing the freshness of items, various strategic and tactical decisions such as locating potential facilities, routing vehicles, and optimally allocating the flow of goods should be made. Since the supply chain network model is considered to be NP-hard, meta-heuristic algorithms have been used to solve the problem by providing a modified priority-based encoding. The results show the high efficiency of the proposed solution method in a short time.

show abstract

“…Li et al (2017) and Tromp et al (2012) analyze the value of such packaging systems from an operations point of view, considering consumers' inventory issuing behavior, stock-outs, waste, and profits. Hertog et al (2014) and Van Elzakker et al (2014) develop models that use remaining shelf life information in operational decision-making. A number of studies focus on predicting remaining shelf life in the cold chain by using temperature, humidity, or other factors that impact food quality with the help of traceability technology (Grunow & Piramuthu, 2013;Raab et al, 2008).…”

Section: Literature Review and Contributionmentioning

confidence: 99%

“…(2014) and Van Elzakker et al. (2014) develop models that use remaining shelf life information in operational decision‐making. A number of studies focus on predicting remaining shelf life in the cold chain by using temperature, humidity, or other factors that impact food quality with the help of traceability technology (Grunow & Piramuthu, 2013; Raab et al., 2008).…”

Section: Introductionmentioning

confidence: 99%

Determining maximum shipping age requirements for shelf life and food waste management

Akkaş

Honhon²

2023

Production and Operations Management

View full text Add to dashboard Cite

Products approaching the end of their shelf life on retail store shelves are more likely to result in food waste. For this reason, manufacturers establish shipping policies related to the age of the products that leave their warehouses, that is, they set a maximum age beyond which shipping to retail stores is no longer allowed. In practice, most existing policies are simple one-size-fits-all rules that do not accommodate the varying characteristics of the products. We offer a framework that manufacturers can use to determine maximum shipping age thresholds based on a Markov chain model, where the objective is to maximize profit, net of the cost of expiration at the warehouse and retail stores. We derive analytical insights about the impact of a shipping age threshold on food waste in the supply chain and obtain sufficient conditions under which a maximum shipping age threshold is suboptimal within the class of Ship-Oldest-First (a.k.a. First-In-First-Out) issuing policies. We also numerically investigate the relationship between different system parameters (e.g., demand rate, waste cost at warehouse and retail, warehouse inventory, total shelf life) and the optimal shipping age threshold. Using real data from our industry collaborator, we compute the optimal shipping age thresholds at the stock-keeping-unit (SKU) level for over 450 products and find that 9-10% of the SKUs currently have suboptimal shipping age thresholds. This presents an opportunity to improve profits by up to 8.7% and reduce food waste by up to 14.7%. These improvements correspond to up to $292,561 savings and 1846 truckloads of waste reduction annually. Our framework can be adopted by any firm and satisfies a much emphasized need in industry to control food waste through shelf life management.

show abstract

Optimizing the tactical planning in the Fast Moving Consumer Goods industry considering shelf-life restrictions

Cited by 13 publications

References 15 publications

Modeling an Inventory Routing Problem for perishable products with environmental considerations and demand uncertainty

Modeling an Inventory Routing Problem for perishable products with environmental considerations and demand uncertainty

Modeling the supply chain network in the fast-moving consumer goods industry during COVID-19 pandemic

Determining maximum shipping age requirements for shelf life and food waste management

Contact Info

Product

Resources

About