935. Investigating Retailer-Food Bank Partnership: Decision Analysis on Supply Chain Efficiencies and Consumer Income Diversity
Invited abstract in session MA-42: Sustainable food supply chains, stream Circular & Sustainable Supply Chains.
Monday, 8:30-10:00Room: Newlyn GR.02
Authors (first author is the speaker)
| 1. | Yu Shi
|
| Warwick Business School, The University of Warwick |
Abstract
Global food supply chains face rising challenges from food insecurity, increasing demand, and food loss and waste (FLW). This study examines how a retailer’s partnership with a food bank—through charitable donations—compares to non-partnership strategies (fixed pricing and markdown pricing) in terms of profitability and supply chain efficiency. Supply chain efficiency is measured by total FLW and food accessibility rate, reflecting environmental and social sustainability respectively. A two-period decision model is developed, incorporating strategic consumer behaviour, income segmentation, and food quality depreciation. The findings reveal that while food bank partnership generally does not harm retailer profits, it can increase overall FLW and reduce food accessibility, especially when logistical losses occur. Such partnership is beneficial only when the valuation of surplus food exceeds low-income consumers’ budgets and high-income consumers dominate the market. When donation rewards for the retailer are low, markdown pricing is more profitable than charitable donations, but the relative outcomes for supply chain efficiency remain unchanged. These insights help retailers optimise surplus-food strategies based on consumer income structures, and highlight the need for improved food bank logistics and carefully designed government policies to improve food redistribution efficiencies.
Keywords
- Sustainable Development
- OR in Sustainability
- Supply Chain Management
Status: accepted
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