3rd European International Conference on Industrial Engineering and Operations Management

Optimal Inventory Control Policies for Avoiding Food Waste

Dimitrios Vlachos, Ioannis Mallidis & Volka Yakavenka
Publisher: IEOM Society International
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Track: Sustainability in Supply Chains and Operations

Considering that 120 million people in the EU face the risk of poverty or social exclusion, while at the same time a 35% of perishable food is unnecessarily discarded at supermarkets, the redistribution of the perishable food surpluses could provide a complete and balanced diet for almost 60.000 people a day or an equivalent reduction of ~100 million € per year expenses in poverty confrontation. Moreover, the reduction of food waste through the timely donation to facilities that support socially vulnerable groups of a small amount of a food product (that most probably will end up to waste), could significantly promote a company’s Corporate Social Responsibility (CSR) policy. Under this context, the purpose of this paper is to explore inventory control policies that at a specific time instance close to the expiration date donate food when the inventory level is above a certain threshold and thus, reduce the expected amount to be disposed at the expiration date. Analytic and numerical models are employed in a single period setting to calculate optimal order quantity and threshold values that maximize the company’s profit. Numerical experimentation for a specific case discusses the conditions under which the proposed policy is feasible.

Published in: 3rd European International Conference on Industrial Engineering and Operations Management, Pilsen, Czech Republic

Publisher: IEOM Society International
Date of Conference: July 23-26, 2019

ISBN: 978-1-5323-5949-1
ISSN/E-ISSN: 2169-8767