Evaluating alternative supply chain structures for perishable products

Abstract

Purpose

This paper sets out to investigate the impact of various supply chain advancements within a perishable goods environment.

Design/methodology/approach

The study uses discrete event simulation to evaluate diverse adjustments within the distribution framework of a food manufacturer and their major customers. Analysed aspects include level of safety inventory held, inventory issuing, replenishment and through‐put policies and increased demand transparency due to collaboration between manufacturer and various retailers. The importance and the impact of these factors are investigated using a wide variety of performance measures.

Findings

Several promising practice designs are generated and recommended for implementation to improve the experienced shortcomings. Engaging in collaborative replenishment is emphasized in particular even in cases of limited scope. The analysis further reveals the importance of advanced inventory dispatch policies.

Research limitations/implications

The research focused on the delivery framework of a particular manufacturer and the chosen products. Hence, research findings may differ and need to be modified before drawing conclusions for different products, companies or industries.

Originality/value

Evaluating the impact of various stages of collaboration within a perishable product supply chain environment has not been addressed much within prior SCM research. The analysis tackles a variety of issues that specifically arise within a perishable goods framework and aims to support practitioners by identifying possible pitfalls and areas of improvement.

Citation

Thron, T., Nagy, G. and Wassan, N. (2007), "Evaluating alternative supply chain structures for perishable products", The International Journal of Logistics Management, Vol. 18 No. 3, pp. 364-384. https://doi.org/10.1108/09574090710835110