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Waste reduction in the supply chain of a deteriorating food item - impact of supply structure on retailer performance

Waste reduction in the supply chain of a deteriorating food item - impact of supply structure on retailer performance
Waste reduction in the supply chain of a deteriorating food item - impact of supply structure on retailer performance
In this article, we examine how an Operational Research (OR) modeling approach can help in identifying how structural components in the supply process of a food product subject to a small probability of almost immediate failure affects the amount of waste arising at the retailer. This process can be viewed as the cumulative effect of various possible causes, including (apparent) product flaws and breakage. This category of waste, in contrast to products that are removed based on reaching their best before or use-by date, are also having little potential for redistribtion, and may thus be most targeted in future waste reduction legislative initiatives. We develop some relatively easy to calculate measures to help a retailer with identifying the financial implications of waste production in relation to some supply source characteristics, the financial motivation of its supplier to tackle item deterioration at the retailer level, and how this is affected by the level of logistics collaboration. We also discuss how the model can help in deriving the relative benefit of technological, logistical, supplier selection, and marketing strategies available to the retailer to meet future legislative waste reduction targets, and derive conclusions with respect to the design of legislative instruments.
Collaboration, Deterioration, Inventory, Net Present Value, Waste
0377-2217
Beullens, Patrick
893ad2e2-0617-47d6-910b-3d5f81964a9c
Ghiami, Yousef
7b068b8e-c397-49d0-92ae-78886f1c84ec
Beullens, Patrick
893ad2e2-0617-47d6-910b-3d5f81964a9c
Ghiami, Yousef
7b068b8e-c397-49d0-92ae-78886f1c84ec

Beullens, Patrick and Ghiami, Yousef (2021) Waste reduction in the supply chain of a deteriorating food item - impact of supply structure on retailer performance. European Journal of Operational Research. (doi:10.1016/j.ejor.2021.09.015).

Record type: Article

Abstract

In this article, we examine how an Operational Research (OR) modeling approach can help in identifying how structural components in the supply process of a food product subject to a small probability of almost immediate failure affects the amount of waste arising at the retailer. This process can be viewed as the cumulative effect of various possible causes, including (apparent) product flaws and breakage. This category of waste, in contrast to products that are removed based on reaching their best before or use-by date, are also having little potential for redistribtion, and may thus be most targeted in future waste reduction legislative initiatives. We develop some relatively easy to calculate measures to help a retailer with identifying the financial implications of waste production in relation to some supply source characteristics, the financial motivation of its supplier to tackle item deterioration at the retailer level, and how this is affected by the level of logistics collaboration. We also discuss how the model can help in deriving the relative benefit of technological, logistical, supplier selection, and marketing strategies available to the retailer to meet future legislative waste reduction targets, and derive conclusions with respect to the design of legislative instruments.

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Beullens Ghiami Waste_reduction_at_the_retailer - Accepted Manuscript
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More information

Accepted/In Press date: 10 September 2021
e-pub ahead of print date: 16 September 2021
Keywords: Collaboration, Deterioration, Inventory, Net Present Value, Waste

Identifiers

Local EPrints ID: 451623
URI: http://eprints.soton.ac.uk/id/eprint/451623
ISSN: 0377-2217
PURE UUID: 33a8b54f-cb24-4683-b631-690e908f316a
ORCID for Patrick Beullens: ORCID iD orcid.org/0000-0001-6156-3550

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Date deposited: 14 Oct 2021 16:33
Last modified: 28 Apr 2022 02:00

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Author: Yousef Ghiami

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