7th Annual International Conference on Industrial Engineering and Operations Management

Dynamical Modeling of Fresh Vegetables while Considering Degradation Effect on Pricing

Abdulaziz T. Almaktoom & Raghad Bahebshi
Publisher: IEOM Society International
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Track: Undergraduate Student Paper Competition
Abstract

One of the most critical issue that challenges many fresh vegetables logistics is the transportation. Any delay on transportation would negatively impact the price of fresh vegetables and lead to a huge financial consequences. Transport the perishable food in a specific time is one of the difficult issues that supply chain management face. This paper developed a novel dynamic pricing model that consider the effect of fresh vegetables degradation on pricing. It introduces a dynamical model that aims to minimize the impact of delay through comparing five different delivering strategies while having limited transporting resources.  In this research, five strategies have been modeled and analyzed. Each strategy has a situation different than the others. These strategies are Direct Shipment based on Highest Daily Profit Rate, Direct Shipment based on Shelf-Life, Direct Shipment based on the Highest Selling Price, Shipping by Grouping the Highest Profitable to the Nearest Neighbor, and Shipping by the Whole Fleet to the Nearest Neighbor.  A case study consists of multiple vegetables with different degradation rates, multiple retailers, and limited transportation capacity that is performed to demonstrate the effectiveness of proposed models.

Published in: 7th Annual International Conference on Industrial Engineering and Operations Management, Rabat, Morocco

Publisher: IEOM Society International
Date of Conference: April 11-13, 2017

ISBN: 978-0-9855497-6-3
ISSN/E-ISSN: 2169-8767