Track: Sustainability in Supply Chain, Enterprise Operations and Strategies including Food Supply Chain

Abstract

According to the data collected by World Bank in 2010, one third of the household expense for average income family is on food consumption. In the other hand, Food and Agricultural Organization of United Nation (FAO) has been published an annual report stated that a large majority of losses in food supply chain consist of two part. The first part is the food wastes from disregard products at retail store which link to the customer’s behavior and the replenishment policy of the store and the second part is the food losses along the supply chain from producer to retail store such as storage, transportation and distribution. Since most of the international food supply chain is dealing with a random lifetime perishable product such as fruit, vegetable, and cereal, which have more complexity information to be managed by supply chain manager in order to satisfy the stochastic demand and prevent the lost sale while maintain the minimum spoilage and maximize the profit of the store. This paper proposes a multi objective optimization model for international perishable food supply chain under stochastic demand and fuzzy deterioration rate. The objectives of the model are maximizing the profit of retail store and minimizing the total cost by reducing the spoilage product at each node in the supply chain.