Abstract

Recent Industry 4.0 developments have created disruptive changes and forces companies to rethink the way they design their supply chains. To cope with recent Industry 4.0 trends and changed requirements, supply chains need to become more connected, much faster, more granular, and much more precise. Digitisation of supply chain enables fast, flexible, granular, accurate, transparent, efficient, and sustainable transformations in supply chains. In this work, we study a business model for digitised food supply chain connected with their equivalents under an IoT environment. Specifically, we study a connected online grocery network design aiming to minimize food waste in the network and manage a sustainable food supply chain by considering a lateral inventory share-based food inventory management. Minimization of food waste is one of the recent significant concerns for sustainable food supply chain network designers. In an effort to contribute this target, we propose a lateral inventory share model for online groceries where one e-grocery can make a commercial transaction with another one. We study a single echelon network with three online groceries and simulate the proposed models to compare their performances.