Reducing waste and ecological impacts through a sustainable and efficient management of perishable food based on the Monte Carlo simulation

Abstract

In today's competitive global market it is mandatory to improve warehousing operations integrating economic, environmental and social aspects. The recent advancement in monitoring technologies can greatly improve the performance of the food supply chain reducing product loss. In particular,, in the perishable food supply chain, initially inventory operations are critical because they manage the material flows in very variable conditions. The deterioration level of the products as well as the market demand are the main factors that can influence warehouse strategy. This research aims to consider the application of sustainability principles in the context of warehouse storage, evaluating the combined decision of implementing shelf life based picking policy and pricing strategy. In particular, the proposed approach is based on a referenced shelf life model and on the Monte Carlo simulation. Three different pricing scenarios in a case study for the management of the warehouse were defined and their Economic Traceability Lot was determined on the basis of an economic feasibility analysis. Finally, the carbon footprint for each scenario was determined in terms of emissions produced by temperature-controlled transportations and for the landfilling of product wasted.