The model to optimize deliveries of perishable food products in supply chains

Tetiana Vorkut,Olga Sopotsko,Iaroslava Levchenko,Okcana Bilonog,Lyudmila Volynets

doi:10.15587/1729-4061.2019.177903

Tetiana Vorkut, Olga Sopotsko + Show 3 more

Open Access

https://doi.org/10.15587/1729-4061.2019.177903

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Abstract

The probabilistic-statistical analytical model of optimizing the supply of perishable food products (PFPs) has been improved. The demand for PFPs is effectively satisfied by introducing into supply chain systems a possibility for additional delivery of PFPs in case of their deficit in the period between planned deliveries. It has been proven that the optimum size of basic delivery that corresponds to the maximum profit of a PFP supply chain system is affected by the following:– the magnitude of profit from the sale of a single PFP unit earned from basic and additional delivery;– the magnitude of loss incurred due to excess PFP units; – the parameters of demand distribution between the periods of planned deliveries; – technical-operational and economic indicators that characterize the operation of automobiles along multi-drop routes.We have performed a comparative analysis of conditions for ensuring PFP deliveries in supply chain systems using the known and proposed improved variant of the probabilistic-statistical analytical model of PFP deliveries optimization. This analysis has revealed that the two-stage supply system, that is the one that implies additional delivery, is more economical-reasonable in terms of conditions for the operation of PFP supply chains. The expedience of increasing transportation expenditures related to transporting additional deliveries has been proven. It is their increase that predetermines a significant increase in the system's profit by achieving a high level of demand satisfaction and reducing losses incurred through the formation of unsold excess products

Highlights

In 2018, the Food and Agriculture Organization (FAO) of the United Nations published statistical data regarding the loss of food products [1]
Under the condition of an example given in the current work, the optimization of perishable food products (PFPs) deliveries in the supply chain systems according to the model, which implies the possibility of additional delivery in the event of shortage, could increase the profit within a system of supply links by 1.5 times and strongly depends on the category to which a given PFP can be attributed to, based on XYZ analysis
A prerequisite for this, as follows from expression (6), is the existence of a significant difference between the magnitude of the lost benefit due to the shortage of PFPs and the losses from the accumulation of unsold products per a product unit in favor of the latter under conditions of significant variation in demand. This indicates the presence of a “niche” in the market of a given kind of PFP – in the form of demand, which cannot be effectively satisfied using the existing business model, in terms of ensuring deliveries

Summary

Introduction

In 2018, the Food and Agriculture Organization (FAO) of the United Nations published statistical data regarding the loss of food products [1]. Studies and publications that directly address the approaches to resolving the latter of the above problems can be conceptually represented within two interrelated groups These are those which relate to the search for effective means to slow down the processes of losing those properties of PFPs that render the latter perishable, and those that. The place of production and the point of sale (or consumption) must coincide In this case, duration of the functional logistics cycle depends on the duration of its components, which, in general, are variable. Duration of the functional logistics cycle depends on the duration of its components, which, in general, are variable When following those business models that imply the separation of PFP production and selling processes, still relevant is the above-mentioned issue of existing demand or unmet demand, or the formation of unsold products between the periods of planned deliveries. Under the conditions for solving a given problem, the methodology of supply management puts forward an important task that requires further improvement of approaches to solving it, the task on determining the optimal (rational) order size in the PFP supply chains

Literature review and problem statement

The aim and objectives of the study

Conclusions