Abstract
In this paper, we have evaluated the scope of deploying digital technologies like IoT to improve the performance of the cold supply chain. A scenario has been considered where the retailer source fresh produce from the supplier and has outsourced its logistics operations to a third party logistics provider (3PL). 3PL's service level affects the sellable quality and quantity of the produce; however, to improve its service level, the 3PL has to incur additional cost on freshness keeping effort. The retailer can decide the quantity to be sourced from the supplier and whether to employ digital technologies like IoT or not. Moreover, both 3PL and retailer being independent entities, it has been assumed that the retailer has no direct control over freshness keeping effort provided by 3PL. We have examined the case in a newsvendor problem setting, where the freshness of the product influences its randomly distributed demand. In this paper, it has been proved that incorporating IoT can immediately improve the cold chain profits. Our analysis asserts the channel power that large retailers like Walmart enjoy, and outlines the scope for coordination and cooperation in the presence of IoT.
Original language | English |
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Book series | IFAC-PapersOnLine |
Volume | 52 |
Issue number | 13 |
Pages (from-to) | 1192-1197 |
Number of pages | 6 |
ISSN | 2405-8963 |
DOIs | |
Publication status | Published - Sept 2019 |
Event | 9th IFAC Conference on Manufacturing Modelling, Management and Control, MIM 2019 - Berlin, Germany Duration: 28 Aug 2019 → 30 Aug 2019 |
Conference
Conference | 9th IFAC Conference on Manufacturing Modelling, Management and Control, MIM 2019 |
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Country/Territory | Germany |
City | Berlin |
Period | 28/08/2019 → 30/08/2019 |
Sponsor | et al., IFAC TC 1.3. Discrete Event and Hybrid Systems, IFAC TC 3.2. Computational Intelligence in Control, IFAC TC 4.3. Robotics, IFAC TC 5.1. Manufacturing Plant Control, International Federation of Automatic Control (IFAC) - Technical Committee on Manufacturing Modelling for Management and Control, TC 5.2 |
Keywords
- Cold Supply Chain
- Fresh Produce
- Industry 4.0
- Internet of Things
- Newsvendor Problem