A Model for Multi-Distribution Policy for Perishable Products in a Supply Chain Network
Authors: Orsarh, E.S., Oluleye, A.E., Anyaeche, C.O., Adeosun, P.O. And Kalio, N.T.
DOI Info: http://doi.org/10.5281/zenodo.12599843
ABSTRACT
Modern markets across the globe have witnessed a high expedition of consumers and volatility of demand. As such, business owners are refocusing their investments toward their customers and suppliers for production efficiency and marketability. Industries handling deteriorating products such as agro-food are faced with the sparseness of models that suit the nature of their industry, especially with price variance mostly in developing countries. This study was conducted to develop a multi-supply chain distribution model for perishable products in a price-invariant setting which aims to minimize wastage from the leftovers. In the example problem, the firm produces products with shelf life of four days and sold to distributors who adopt ordering policies of one-day, two-day, three-day and four-day and buy 40, 30, 20 and 30 % of available quantity of products, respectively. The model provided a production plan that aligns with the demand for products, which in turn is driven by the time-related ordering policies of the distributors. They order to minimize losses given the product’s short shelf life and zero salvage values at the end of shelf life. The model and the example given demonstrate a production plan that aligns well with demand.
Affiliations: Department of Industrial and Production Engineering, University of Ibadan, Ibadan, Nigeria.
Keywords: Multi Distribution Policy, Perishable Products, Price Invariance, Supply Chain Network, Markets
Published date: 2024/06/30
