Article ID: | iaor20123202 |
Volume: | 40 |
Issue: | 6 |
Start Page Number: | 906 |
End Page Number: | 917 |
Publication Date: | Dec 2012 |
Journal: | Omega |
Authors: | Li Dong, Wang Xiaojun |
Keywords: | agriculture & food, inventory, retailing, combinatorial optimization, programming: dynamic, quality & reliability |
Waste stemmed from inappropriate quality control and excessive inventories is a major challenge for perishable food management in grocery retail chains. Improvement of visibility and traceability in food supply chains facilitated by tracking and tracing technologies has great potential to improve operations efficiency. This research aims to reduce food spoilage waste and maximise food retailer's profit through a pricing approach based on dynamically identified food shelf life. The proposed model is evaluated through different pricing policies to exploit the benefits from utilising accurate product shelf life information captured through innovated tracking and monitoring technologies. Numerical analysis is conducted in an illustrative case study.