Innovative decision support tools for perishable food supply chain management

Abstract

PurposeWe introduce decision support tools aimed at optimizing perishable food supply chain management, effectively balancing conflicting objectives such as the exporter’s product collection cost and the importer’s profit. This involves considering factors like perishability, selling price, discount rate, and order quantity to achieve optimal outcomes.Design/methodology/approachThis study considered a three-echelon supply chain comprising farmers, a single exporter, and a single importer providing a single, random-lifetime, perishable product under deterministic customer demand. The proposed mathematical model derived the optimal order quantity, selling price, and discount rate for the entire supply chain. This integrated optimization model treats both demand and supply sides as a multi-objective problem, employing a nonlinear program and a two-stage capacitated vehicle routing problem formulation. Numerical examples and a case study focusing on Thailand durian supply chain were conducted to illustrate the approach of the proposed model.FindingsTaking into account both the importer’s profit and the exporter’s product collection cost, the proposed integrated supply chain model and tools maximize profitability, minimizes waste, and meets demand by optimizing perishable product collection costs and proposing a discount system for selling prices.Research limitations/implicationsLimited to a single perishable product in a three-echelon international food supply chain. Future research can explore different products and supply chain contexts.Practical implicationsThe tools enhance decision-making for supply chain managers, improving efficiency, reducing costs, and enhancing customer satisfaction in the perishable food industry.Social implicationsThe proposed model aids in local workforce management by forecasting required manpower for upcoming seasons. By factoring in product quality and pricing, it ensures customers receive fresh products at fair prices. Furthermore, the near-zero waste concept enhances storage conditions at importers' facilities, contributing to improved environmental hygiene.Originality/valueThe integrated model and decision support tools offer a novel approach to address complexities and conflicting objectives in perishable food supply chains, providing practical insights for researchers and practitioners.