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Cold chain configuration design: location-allocation decision-making using coordination, value deterioration, and big data approximation

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posted on 2023-06-09, 03:28 authored by Adarsh Kumar Singh, Nachiappan SubramanianNachiappan Subramanian, Kulwant Singh Pawar, Ruibin Bai
The study proposes a cold chain location-allocation configuration decision model for shippers and customers by considering value deterioration and coordination by using big data approximation. Value deterioration is assessed in terms of limited shelf life, opportunity cost, and units of product transportation. In this study, a customer can be defined as a member of any cold chain, such as cold warehouse stores, retailers, and last mile service providers. Each customer only manages products that are in a certain stage of the product life cycle, which is referred to as the expected shelf life. Because of the geographical dispersion of customers and their unpredictable demands as well as the varying shelf life of products, complexity is another challenge in a cold chain. Improved coordination between shippers and customers is expected to reduce this complexity, and this is introduced in the model as a longitudinal factor for service distance requirement. We use big data information that reflects geospatial attributes of location to derive the real feasible distance between shippers and customers. We formulate the cold chain location-allocation decision problem as a mixed integer linear programming problem, which is solved using the CPLEX solver. The proposed decision model increases efficiency, adequately equates supply and demand, and reduces wastage. Our study encourages managers to ship full truck load consignments, to be aware of uneven allocation based on proximity, and to supervise heterogeneous product allocation according to storage requirements.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Annals of Operations Research

ISSN

0254-5330

Publisher

Springer Verlag

Issue

1-2

Volume

270

Page range

433-457

Department affiliated with

  • Management Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2016-10-11

First Open Access (FOA) Date

2017-11-20

First Compliant Deposit (FCD) Date

2016-10-11

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