Supply Chain Strategies for Perishable Products: The Case of Fresh Produce

Blackburn, Joseph D.; Scudder, Gary D.

doi:10.1111/j.1937-5956.2009.01016.x

Cited by 362 publications

(217 citation statements)

References 18 publications

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“…Empirical studies have found that consumers are sensitive to the freshness of perishable food and usually give a lower valuation to expiring food [28]. Therefore, previous studies dealing with the deterioration of product quality over time have usually assumed quality dependent demand [29,30]. Food safety is a factor that is different from food quality and is difficult to observe.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic Analysis of a Traceability System for a Two-Level Perishable Food Supply Chain

Zhu¹

2017

Sustainability

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Food waste stemmed from food contamination and ineffective quality control is a significant challenge to food management. Supply chain traceability has become an essential task of the food industry for guaranteeing food quality and safety and reducing food waste. Radio Frequency Identification (RFID) has emerged as a lead technology in the development of traceability systems, which enable automatically capturing of food information along the supply chain. However, the significant investment cost has been a major obstacle in the diffusion of traceability systems in the food industry. This study conducts a cost-benefit analysis of a RFID-enabled traceability system for a two-level perishable food supply chain, which consists of an upstream supplier and a downstream retailer. Consumer perceptions of food quality and safety are jointly considered when evaluating the value of a traceability system. The optimal decisions of the supply chain participants are derived in both centralized and decentralized systems, in terms of wholesale price, order quantity, price markdowns, and granularity level of the traceability system. The results show that a dynamic pricing policy supported by the traceability system could significantly reduce food waste and improve the retailer's performance. We further propose a two-part tariff contract to coordinate the supply chain and to distribute benefits and costs of the traceability system between supply chain participants. This study demonstrates that a well-developed traceability system could significantly improve the supply chain performance and become a profitable investment for the food industry.

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Section: Literature Reviewmentioning

confidence: 99%

Economic Analysis of a Traceability System for a Two-Level Perishable Food Supply Chain

Zhu¹

2017

Sustainability

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“…A range of studies on inventory management in retail have been carried out, taking into account different aspects (e.g., see [2][3][4][5]). …”

Section: Literary Reviewmentioning

confidence: 99%

“…It follows that the amount of replenished goods at time t equals the order made at the preceding time. Equation (2) can be applied to a situation in which the amount of replenished goods equals the amount of goods ordered at time t − τ :…”

Section: An Equation Of Inventory Balancementioning

confidence: 99%

Numerical Solution of the Inventory Balance Delay Differential Equation

Novotná

2015

International Journal of Engineering Business Management

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Inventory represents an essential part of current assets, which are typically characterized by their transience. This paper aims to outline a numerical solution of the inventory balance equation supplemented by an order-upto replenishment policy for a case in which the problem is described by a differential equation with delayed argument. The results are demonstrated on a specific example and the behaviour of the model is presented using a computer simulation. The results are graphically shown in the Maple system. The solution makes use of the theory of functional differential equations, especially the part dealing with differential equations with delayed arguments.

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“…They used both linear and exponential penalty cost charged for every perishable item held in storage as the usability of the products decayed over time. Recently, Blackburn and Scudder [17] developed a supply chain strategy for perishable products by considering fresh produce value decrease through a supply chain.…”

Section: Literature Reviewmentioning

confidence: 99%

Model of an Integrated Procurement-Production System for Food Products Incorporating Quality Loss during Storage Time

Fauza¹,

Amer²,

Lee³

2013

IJMMM

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Abstract-Research on procurement-production systems for deteriorating items has been done. The majority of studies assume that the perishable characteristics affect only the quantity of inventoried items. For food products, however, their quantity remains constant during their shelf life period, but the quality deteriorates over time. This paper proposes a new procurement-production model incorporating this situation. The quality change behavior of food products is approached differently depending on their forms either as raw materials or finished goods. As raw materials, the kinetic model is used to represent the quality degradation during storage time, while as finished goods the shelf-life dependent pricing is utilized to describe the value loss due to the quality perception of customers. A mathematical model representing the integrated procurement-production of raw materials and finished goods at a manufacturer is established in this research. The objective is to maximize the total profit per unit time of the system by controlling a number of variables, namely the production cycle (T), the number of raw materials' procurement over one production cycle (m) and the number of finished goods delivery over one production cycle (n).Index Terms-Deteriorating items, food inventory, procurement-production system, quality loss, value loss. I. INTRODUCTIONEver since EOQ (Economic of Quantity) inventory control has been introduced, many researchers still develop it to solve various inventory problems. Conventionally, economic lot-size of raw materials was decided separately from finished product and this may lead to sub-optimization. It is because demand for raw materials depends on production schedule of finished products. Later, Goyal [1] developed an integrated inventory model for raw material and finished product. This research gave the first contribution in the field of integrated procurement-production (IPP) systems.Recently, research in the field of IPP system receives significant attention from scholars and many inventory models has been developed to accommodate this issue [2]. Goyal and Deshmukh [3] developed a model for IPP systems in just in time JIT environment to minimize set up time. And later, Lee [4] extend the IPP to an integrated supply chain problem by integrating the economic lot size of raw material, manufacturing set up and finished products. However, those studies assume that items can be stored infinitely, while in Manuscript received November 5, 2012; revised January 10, 2013. Gusti Fauza is with the School of Engineering, University of South Australia and Food Science and Technology Department, Sebelas Maret University, Indonesia (email: faugy001@mymail.unisa.edu.au).Yousef Amer and Sang Heon Lee are with the School of Engineering, University of South Australia. fact, some items have limited life time.In reality, it is often found that some particular items deteriorate over the storage period, for instance food products. For such items, the quality degradation during the storage time can lead ...

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Supply Chain Strategies for Perishable Products: The Case of Fresh Produce

Cited by 362 publications

References 18 publications

Economic Analysis of a Traceability System for a Two-Level Perishable Food Supply Chain

Economic Analysis of a Traceability System for a Two-Level Perishable Food Supply Chain

Numerical Solution of the Inventory Balance Delay Differential Equation

Model of an Integrated Procurement-Production System for Food Products Incorporating Quality Loss during Storage Time

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