Mitigating risks of perishable products in the cyber-physical systems based on the extended MRP model

David Bogataj, Marija Bogataj and Domen Hudoklin

International Journal of Production Economics, 2017, vol. 193, issue C, 51-62

Abstract: In the supply chain of fresh fruit and vegetables, large losses may incurred throughout the whole farm to fork route. Food supply chain management is faced with challenges of minimizing the post-harvest loss, while delivering the items directly to the refrigerators in smart homes (i.e. domotics). A substantial value can therefore be added to the criterion function by an immediate, real-time detection of changes in perishability dynamics, including a real-time calculation and communication of the remaining shelf life during transportation from one chain node to another. The changes in the estimated remaining shelf life can, therefore, be matched with the expected remaining transportation time, and so the critical moment can be avoided with a given probability. This can be done by dynamic rerouting in real time, based on previous net present value (NPV) criteria. Such criteria could then we include in the contractually stipulated remaining shelf life requirements at the delivery point.

Keywords: Cyber-physical systems; Smart home; Smart container; Food delivery; Post-harvest loss prevention; IoT; Material requirements planning theory; Collaborative cities (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:193:y:2017:i:c:p:51-62

DOI: 10.1016/j.ijpe.2017.06.028

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