4.7 Article

Mathematical modelling of the order-promising process for fruit supply chains considering the perishability and subtypes of products

Journal

APPLIED MATHEMATICAL MODELLING
Volume 49, Issue -, Pages 255-278

Publisher

ELSEVIER SCIENCE INC
DOI: 10.1016/j.apm.2017.04.037

Keywords

Order promising process; Available-To-Promise; Lack of homogeneity in the product; Fruit supply chain; Perishability

Funding

  1. Ministry of Science, Technology and Telecommunications, of the government of Costa Rica (MICITT), from the Spanish Science, Technology and Telecommunications through the programme of innovation and human capital for competitiveness (PINN) [PED-019-2015-1]
  2. Spanish Ministry of Economy and Competitiveness Project Methods and models for operations planning and order management in supply chains characterised by uncertainty in production due to the lack of product uniformity (PLANGES-FHP) [DPI2011-23597]

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This paper proposes a mixed integer mathematical programming model to support the complex order promising process in fruit supply chains. Due to natural factors, such as land, weather or harvesting time, these supply chains present units of the same product that differ in certain relevant attributes to customers (subtypes). This becomes a managerial problem when customers require specific subtypes in their orders. Additionally, the deterioration of the original characteristics of subtypes over time generates waste and gives rise to a shelf life-based pricing policy. Therefore, the developed model should ensure that customers are served not only the quantities and dates, but also the required homogeneity and freshness. The model aims to maximise two conflicting objectives: total profit and mean product freshness. The novelty of the model derives from considering both homogeneity in subtypes as a requirement in customer orders and the traceability of product deterioration over time. Different scenarios are defined according to the weight assigned to each objective, shelf-life length and pricing policy in a rolling horizon scheme. The numerical experiments conducted for a real orange and tangerine supply chain, show the model's validity and the conflicting behaviour of the two objectives. The highest profit is made at the expense of the lowest mean freshness delivered, which is reinforced by the narrower the price variation with freshness. Finally, the positive impact of prolonging the product's shelf life on both objectives is shown. (C) 2017 Elsevier Inc. All rights reserved.

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