Design of Supply Chain Network Model for Perishable Products with Stochastic Demand: An Optimized Model

Subject Areas : Executive Management

Teshome Bekele Dagne ¹ , Jeyraju Jayaprkash ² , Sisay Geremew Gebeyehu ³

1 - College of Engineering and Technology, Wolkite University, Wolkite, Ethiopia.
2 - Faculty of Mechanical and Industrial Engineering, Bahir Dar Institute of Technology, Bahir Dar University, Bahir Dar, Ethiopia.
3 - Faculty of Mechanical and Industrial Engineering, Bahir Dar Institute of Technology, Bahir Dar University, Bahir Dar, Ethiopia.

Received: 2018-04-03 Accepted : 2019-06-02 Published : 2020-06-01

Keywords: Stochastic demand, Supply chain network, Perishable goods, Avocado,

Abstract :

Supply chain network design in perishable product has become a challenging task due to its short life time, spoilage of product in degradation nature and stochastic market demand. This paper focused on designing and optimizing model for perishable product in stochastic demand, which comprises multiple levels from producer, local collector, wholesaler and retailers. The ultimate goal is to optimize availability and net profit of all members in supply chain network model for avocado fruit under stochastic demand. The network model has considered the quality deterioration rate of the product with increased order of transportation time. The validity of developed model was tested with data collected from avocado supply chain network in Ethiopian market.

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