Cost Optimisation of Supply Chains in the Food Industry: Cost Function Modelling

Ion Popa, Sorina-Geanina Stanescu, Ani?oara Duica (), Elisabeta Ilona Molnar and Mircea Constantin Duica
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Ion Popa: Bucharest University of Economic Studies and Academy of Romanian Scientists,
Sorina-Geanina Stanescu: Valahia University of Targoviste and Institute of Multidisciplinary Research
Ani?oara Duica: Valahia University of Targoviste, Romania
Elisabeta Ilona Molnar: Partium Christian University of Oradea, Romania
Mircea Constantin Duica: Valahia University of Targoviste, Romania

The AMFITEATRU ECONOMIC journal, 2025, vol. 27, issue 69, 293

Abstract: The food industry faces complex challenges in managing supply chains, significantly affecting operational performance and costs. This paper explores the critical factors influencing the efficiency of food supply chains, such as product perishability, seasonality, climate change, and high logistics costs. The study uses an applied approach based on modelling a cost function that integrates the main components of supply chain expenses — procurement, transportation, warehousing, production and distribution — and how they are affected by industry-specific challenges. The proposed cost function allows for assessing the impact of these variables on total costs and identifying critical areas for optimisation. The results obtained demonstrate that monitoring logistical conditions, adjusting stocks based on seasonal forecasts and optimising transport routes are essential measures to reduce losses and increase the competitiveness of companies in the food industry. The study's applied impact consists of providing a practical cost optimisation tool applicable to manufacturers and distributors. The conclusions emphasise the importance of an integrated approach to risk and cost management in the food industry, providing recommendations for sustainable practices and strategies to increase long-term competitiveness.

Keywords: supply chain; cost; efficiency; food logistics; cost function (search for similar items in EconPapers)
JEL-codes: M11 M21 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:aes:amfeco:v:27:y:2025:i:69:p:293

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