Abstract

Different from the previous articles on multi-echelon deteriorating inventory, this paper explains the economic implications of Weibull parameters for cold chain inventory rather than restricting to mathematical sense. A case study shows that DC warehousing activities and total throughput of the scale factor has a significant effect on the total profit compared with the storage technology and warehousing environment of shape factor. The improvements of DC warehousing standard and total throughput and preservation technology and warehousing environment contribute to the reduction of some DC operation costs and the increase of DC processing and customizing profit.

Highlights

  • On the deteriorating rate of cold chain product, most of the current works thought of as a constant rate or instantaneous deterioration (Yang, Wee 2000; Das et al, 2015; Duan et al, 2018; Mahmoodi et al, 2019)

  • In the comparison of the performance of three-echelon cold chain system with two echelon system, threeparameter The distribution center as a third-party logistics that efficiently links the logistics of producers and retailers and consolidates all parties into a system, can enhance the core competencies of DC warehousing, storage and distribution, and improve the system profitability as a result of perfectly applying with customers ’ requirements for small quantity with large variety and joint operation for all customers, with its value added services of product processing and customizing, picking and assorting

  • This paper is based on the study of three-echelon cold chain inventory system (Wang et al, 2017) to examine the effect of Weibull distribution factors of DC on system profit, so, inventory model formulation and numerical

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Summary

Introduction

On the deteriorating rate of cold chain product, most of the current works thought of as a constant rate or instantaneous deterioration (Yang, Wee 2000; Das et al, 2015; Duan et al, 2018; Mahmoodi et al, 2019). Some cold chain products, such as, food, fruits, and vegetables are not decayed instantaneously. Weibull non-instantaneous deterioration function is used to depict the deteriorating characteristics of cold chain products (Yang 2012; Dye 2013; Sanni, Chukwu 2016). Motivated by the above background, following questions would be proposed: How do the DC deterioration parameters affect the integrated cold chain inventory performance?

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