Proceedings of ICLT 2017
AN OPTIMIZATION APPROACH FOR SCHEDULING FRESH FRUIT EXPORTING OPERATIONS WITH QUALITY LOSS DUE TO TRANSPORTATION AND HOLDING
Kamhangwong Damrongpol; Sekhari Aicha; Neubert Gilles; Sureephong Pradorn
Université Lumière Lyon 2, France; Chiangmai University, Thailand; Université Lumière Lyon 2, France; Chiangmai University, Thailand
International Conference on Logistics & Transport 2017, Bangkok, Thailand, pp. 42-51
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Abstract
Purpose: The quality loss of fruit due to the mechanical injuries and the physiological change during storage and transportation is an important cause of downgrading and wastage of fruit exportation (5% to 60%). The objective of this paper is to propose the optimization approach for scheduling fresh fruit exporting operations which consider the cost of quality loss based on the above-mentioned cause. Design/methodology/approach: The methodology is divided into 3 phase. Firstly, the damage cost due to mechanical injury(MI) and holding cost due to physiological change are estimated by using linear regression. Secondly, mathematical modelling of exportation costs for the exporter considering the damage and holding cost is developed to formulate objective functions. Lastly, solution spaces of models are analysed by numerical study to determine two decision variables: the quantity of fruit exported in each day and on hand inventory duration. Findings: In case study of mangoesteen exportation, the damage and holding cost of fruit exportation can be considered as a linear function with time. This can be used to determine markdown policy with steeper discount and develop the mathematical model via linear regression approach to optimize scheduling fresh fruit exporting operations. Practical implications: The model provides important improvement in profit and cost of fruit exportation. This improvement is more significant for the logistics exporter to make decision in part of export planning, choosing the appropriate distribution scheme, and mark down policy under uncertainty of demand. rate. Originality/value: This paper is a combination the cost of quality loss from MI and physiological change of fruit, which has appeared in single mathematical models. To the best of the authors' knowledge, no mathematical model has yet been proposed.
Keywords
Fruit exportation; Food Quality; Holding Cost; Perishable products; Transportation
Citation
Kamhangwong Damrongpol; Sekhari Aicha; Neubert Gilles; Sureephong Pradorn (2017). AN OPTIMIZATION APPROACH FOR SCHEDULING FRESH FRUIT EXPORTING OPERATIONS WITH QUALITY LOSS DUE TO TRANSPORTATION AND HOLDING. Proceedings of the International Conference on Logistics & Transport (ICLT 2017), Bangkok, Thailand, pp. 42-51.