An Optimization Approach for a Fresh Food Supply Chain: An Application for the Orange Supply Chain Design in Turkey
Abstract
The optimization of supply chain problems in various industry areas is crucial in terms of controlling the quality of the products and costs during the supply chain processes. Protecting and controlling the quality of the product in the food supply chain processes while minimizing the cost is a difficult and critical problem in the food industry. In this study, an application of a model that integrates the quality of the food in decision-making on distribution and production in a food supply chain is implemented using real-life data in Turkey. The degradation of quality of products in storage or transportation is usually based on the storage temperature, storage time, and other constants such as activation energy. Therefore, prediction for the quality of food products is a complex task because of the dynamics of storage conditions and various product characteristics. A methodological approach is proposed to model the degradation of food quality in this study. The rate of quality degradation of food products is evaluated by the proposed approach. A mixed-integer programming model is developed for the optimization of distribution and production planning. To solve the problem, GAMS (General Algebraic Modeling System) CPLEX solver is used as an optimization tool. The results of the case study shows that the suggested model in this study is implementable to the problem with acceptable solution time. In addition, the suggested model is adaptable for different types of food supply chains. This study aims to develop a methodological approach that can be used as a guide for decision-makers.
Keywords
Food Supply Chain, Optimization, Mixed-Integer Linear Programming, Food Industry
References
- [1] D.P. Van Donk, R. Akkerman and T. VanderVaart, “Opportunities and realities of supply chain integration: The case of food manufacturers,” British Food Journal, vol. 110, pp. 218–235, 2018.
- [2] D. Smith and L. Sparks, “Temperature controlled supply chains,” in Food Supply Chain Management, M.A. Bourlakis and P.W.H. Weightman, Eds., Oxford, U.K.: Blackwell Publishing, 2004, pp. 179–198.
- [3] R. Manzini, R. Accorsi, Z. Ayyad, A. Bendini, M. Bortolini, G. Gamberi, E. Valli and T.G. Toschi, “Sustainability and quality in the food supply chain. A case study of shipment of edible oils,” British Food Journal, vol. 116, pp. 2069-2090, 2014.
- [4] J. Trienekens and P. Zuurbier, “Quality and safety standards in the food industry, developments and challenges,” International Journal of Production Economics, vol. 113, pp. 107–122, 2008.
- [5] M. Lütke Entrup, H.O. Günther, P. VanBeek, M. Grunow and T. Seiler, “Mixed-integer linear programming approaches to shelf-life-integrated planning and scheduling in yoghurt production,” International Journal of Production Research, vol. 43, pp. 5071–5100, 2005.
- [6] F. Sgarbossa and I. Russo, “A proactive model in sustainable food supply chain: Insight from a case study,” International Journal of Production Economics, vol. 183, pp. 596–606, 2017.
- [7] D. Zilberman, L. Lu and T. Reardon, “Innovation-induced food supply chain design,” Food Policy, vol. 83, pp. 289–297, 2019.
- [8] H. Allaoui, Y. Guo, A. Choudhary. and J. Bloemhof, “Sustainable agro-food supply chain design using two-stage hybrid multi-objective decision-making approach,” Computers and Operations Research, vol. 89, pp. 369–384, 2018.
- [9] A. Rong, R. Akkerman and M. Grunow, “An optimization approach for managing fresh food quality throughout the supply chain,” International Journal of Production Economics, vol. 131, pp. 421–429, 2011.
- [10] M.M. Aung and Y.S. Chang, “Traceability in a food supply chain: safety and quality perspectives,” Food Control, vol. 39, pp. 172-184, 2014.