Toward halal supply chain 4.0: MILP model for halal food distribution

Abstract

This study is the initiation toward halal supply chain 4.0. This study suggests the full halal dedicated model and the mixed model as the first steps in halal food distribution. The operational cost, product quality, and halal integrity are used to evaluate both models, which are both developed as Mixed Integer Linear Programs (MILP). Each model has a distinct advantage, according to the results of the numerical experiment that is being run using CPLEX Solver. The first model has no cross-contamination risk but has higher overall costs for transportation, vehicle rental, and tardiness. On the other hand, the mixed model has some risk of cross-contamination despite producing a low overall cost. Therefore, the best course of action is to select the distribution model while also considering the product's characteristics, including its cross-contamination risk and whether it falls into the high or low-risk category. The outcomes of the numerical experiment further demonstrated that neither model could address the issues presented by large data sets. This discovery is the impetus to adopt metaheuristics methodology and Industry 4.0 technologies like AI and big data for the halal supply chain problem. Implementing Industri 4.0 technologies can help the halal supply chain to be operationalized better and more in accordance with the disruptive market demand because the halal supply chain has more complex problems than the standard supply chain.