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2879. Quantifying the potential to reduce food waste and increase freshness in a two-echelon divergent single product supply chain.
Invited abstract in session MA-50: Food Waste, stream Retail Operations.
Monday, 8:30-10:00Room: M2 (building: 101)
Authors (first author is the speaker)
| 1. | Rob Broekmeulen
|
| OPAC, TU Eindhoven | |
| 2. | Karel van Donselaar
|
| OPC, TU Eindhoven |
Abstract
Our study investigates allocation strategies at a retailer warehouse that replenishes a multi-period perishable product in case packs to a set of different stores that face stochastic demand. The objective of the retail chain is to reduce food waste and increase freshness, while maintaining an agreed service level in the stores. Since the warehouse has a high service level target for replenishing the stores, it has to keep safety stock, which results in batches with different ages at the warehouse. We showed in a previous study that the waste at the stores can be significantly reduced by unpacking the case packs at the warehouse and/or increasing the remaining shelf life, especially for stores with a low demand. Unpacking at the warehouse allows the stores to order in smaller quantities, but this increases the order picking costs for the warehouse. We quantified in our new research the potential improvements of allocating only a fraction of the stores with unpacked and/or fresher products to limit the additional supply chain costs resulting from applying these strategies.
Keywords
- OR in Sustainability
- Supply Chain Management
- Inventory
Status: accepted
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