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A Novel Integrated Supply Chain Model to Manage Perishable Products Demand and Quality by Applying IoT in Vendor-Managed Inventory

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Abstract

Vendor-managed inventory (VMI) policies within integrated supply chain management (SCM) represent a robust approach that effectively addresses demand, quality, and inventory management, encompassing the sharing of information and data between vendors and retailers. However, in the context of perishable products, timely inventory management becomes crucial, as its success hinges significantly on product quality, which is an area that has been relatively unexplored in the VMI literature. One emerging and efficient method to tackle VMI for perishable products is the deployment of Internet of Things (IoT) devices throughout the entire supply chain. These devices enable real-time tracking and tracing of product quality, encompassing manufacturing processes. Consequently, this study aims to develop a model for selecting the most suitable IoT devices for managing perishable products in supply chains. Despite its significance, the problem of retailer selection based on critical criteria in VMI has not been thoroughly investigated to date. This paper offers optimal policies to enhance production planning and minimize waste for suppliers by harnessing the advantages of VMI and IoT. To validate the proposed model, a case study involving real data from the food supply chain is examined.

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Data Availability

The data that support the findings of this study are available on request from the corresponding author. The data are not publicly available due to restrictions, e.g., their containing information that could compromise the privacy of research participants.

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Authors and Affiliations

  1. Operations Research, Department of Management, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran

    Vahideh Bafandegan Emroozi, Azam Modares & Pardis Roozkhosh

  2. Management Department, University of Technology Sydney (UTS), Sydney, Australia

    Renu Agarwal

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  1. Vahideh Bafandegan Emroozi
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  2. Azam Modares
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  3. Pardis Roozkhosh
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  4. Renu Agarwal
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Correspondence to Vahideh Bafandegan Emroozi.

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Appendix

Appendix

Data of case study

Table 12 Data related to ordering cost, maximum of total order quantity, and minimum of total order quantity for product 1
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Table 13 Data related to ordering cost, maximum of total order quantity, and minimum of total order quantity for product 2
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Table 14 Data related to ordering cost, maximum of total order quantity, and minimum of total order quantity for product 3
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Table 15 Data related to ordering cost, maximum of total order quantity, and minimum of total order quantity for product 4
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Table 16 Data related to safety stock and the unit holding cost
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Bafandegan Emroozi, V., Modares, A., Roozkhosh, P. et al. A Novel Integrated Supply Chain Model to Manage Perishable Products Demand and Quality by Applying IoT in Vendor-Managed Inventory. Process Integr Optim Sustain (2024). https://doi.org/10.1007/s41660-024-00421-7

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