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

Adarsh Kumar Singh, Nachiappan Subramanian, Kulwant Singh Pawar, Ruibin Bai

Research output: Journal PublicationArticlepeer-review

34 Citations (Scopus)
2 Downloads (Pure)

Abstract

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.

Original languageEnglish
Pages (from-to)433-457
Number of pages25
JournalAnnals of Operations Research
Volume270
Issue number1-2
DOIs
Publication statusPublished - 1 Nov 2018

Keywords

  • Big data
  • Cold chain configuration
  • Coordination
  • Location-allocation problem

ASJC Scopus subject areas

  • Decision Sciences (all)
  • Management Science and Operations Research

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