A supply chain dynamics model for managing perishable products under different e-business scenarios

Abstract

This paper models a traditional supply chain with three levels, manufacturer and retailer, for managing the orders and inventories of perishable products. A hybrid approach, based on systems dynamics and optimization, was used to reduce the bullwhip effect along the supply chain, increase fill rates and reduce total costs (order, inventory and stockout costs). The hybrid approach, with optimization, was able to improve the results for perishable products. This model was also tested by using an electronic point of sales (EPOS) collaborative supply chain structure, which gave improved results.