Orange cold chain with multiple nutritional components

Two echelon cold supply chain model is developed in which warehouse and retailer are the two main actors of supply chain. The model is based on energy consumption cost for chiller system and the stochastic lead time. To incorporate the quality degradation, global stability index (GSI) method is used. The objective is to analyze the effect of retailer’s storage temperature and nutritional index weightage on the total cost of supply chain. A breakdown structure of all the associated costs is developed to formulate the total cost of cold chain. A numerical example is used for better understanding. To find the optimal solution, the model is numerically solved by using matlab genetic algorithm. The sensitivity analysis is being performed to study the model behavior against different parameters. Keywords: Cold chain, echelon valuation, quality degradation, global stability index, stochastic lead time

Orange cold chain with multiple nutritional components

Two echelon cold supply chain model is developed in which warehouse and retailer are the two main actors of supply chain. The model is based on energy consumption cost for chiller system and the stochastic lead time. To incorporate the quality degradation, global stability index (GSI) method is used. The objective is to analyze the effect of retailer’s storage temperature and nutritional index weightage on the total cost of supply chain. A breakdown structure of all the associated costs is developed to formulate the total cost of cold chain. A numerical example is used for better understanding. To find the optimal solution, the model is numerically solved by using matlab genetic algorithm. The sensitivity analysis is being performed to study the model behavior against different parameters. Keywords: Cold chain, echelon valuation, quality degradation, global stability index, stochastic lead time

Single vendor-buyer model with deterministic demand, stochastic lead time and multi-quality degradation

This report examines the supply chain strategies for a specific perishable product, or fresh produce and uses green beans as an example. The quality of the products which are in direct correlation with the value of the product are put into the supply chain model, this type of model is also known as “cold chain”. This report in addition to recent researches in cold chain, looks into multi aspect quality degradation and a stochastic lead time from warehouse to retailer. This model developed creates greater insight into the supply chain strategies of such products.

Single vendor-buyer model with deterministic demand, stochastic lead time and multi-quality degradation

This report examines the supply chain strategies for a specific perishable product, or fresh produce and uses green beans as an example. The quality of the products which are in direct correlation with the value of the product are put into the supply chain model, this type of model is also known as “cold chain”. This report in addition to recent researches in cold chain, looks into multi aspect quality degradation and a stochastic lead time from warehouse to retailer. This model developed creates greater insight into the supply chain strategies of such products.

A Discrete Event Simulation Analysis of the Bullwhip Effect in a Multi-Product and Multi-Echelon Supply Chain of Fast Moving Consumer Goods

Timely delivery is the major issue in Fast Moving Consumer Good (FMCG) since it depends on the lead time which is stochastic and long due to several reasons; e.g., delay in processing orders and transportation. Stochastic lead time can cause inventory inaccuracy where echelons have to keep high product stocks. Such performance inefficiency reflects the existence of the bullwhip effect (BWE), which is a common challenge in supply chain networks. Thus, this paper studies the impact of stochastic lead time on the BWE in a multi-product and multi-echelon supply chain of FMCG industries under two information-sharing strategies; i.e., decentralized and centralized. The impact was measured using a discrete event simulation approach, where a simulation model of a four-tier supply chain whose echelons adopt the same lead time distribution and continuous review inventory policy was developed and simulated. Different lead time cases under the information-sharing strategies were experimented and the BWE was measured using the standard deviation of demand ratios between echelons. The results show that the BWE cannot be eliminated but can be reduced under centralized information sharing. All the research analyses help the practitioners in FMCG industries get insight into the impact of sharing demand information on the performance of a supply chain when lead time is stochastic.