Abstract

The position of decoupling point denotes the penetration degree of customer demand into supply chain. To optimize the performance of deteriorating food supply chain, we consider the decoupling point control in conjunction with food production and inventory management under time-varying demand over a finite time horizon. Using dynamic models, optimal position of decoupling point and production-inventory plan are simultaneously determined. The results show that the optimal decoupling point is not related to the change of food demand under zero-inventory policy and it is a monotonically ascending function of demand rate under production smoothing policy. The simulation illustrates a diagram depicting that the optimal decoupling point shifts to the upstream suppliers along with the increase of food deteriorating rate while shifts downstream to the end customers with the growth of the time elasticity of food demand.

Keywords:

Decoupling point, deteriorating food, production-inventory management, time-varying demand,

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Competing interests

The authors have no competing interests.

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The authors have no competing interests.