Lot Sizing Problem for Cold Supply Chain with Energy and Quality Considerations

Cold supply chains (CSCs) are responsible for preserving the quality of perishable goods in storage and transport. However, according to the International Institute of Refrigeration estimates, 12% of the food produced globally in 2017 went to waste due to insufficient cold chain capacities, which strains agricultural production to increase output to compensate for lost demand. Thus, increasing investment in energy will increase cold supply chain absorption capacity and, subsequently, reduce food wastage and smooth the agricultural process. This study aims to integrate the lot-sizing with the energy efforts required to condition and preserve the product quality over time. It considers a constant demand for the final product with quality depending on the temperature and time spent in the warehouse. The model proposed is specifically applied to a case study in a cold chain, showing the impact of different coordination mechanisms. The numerical results of this study will bring some insights into the behaviour of the developed model. The paper contributes to the literature on environmentally friendly solutions for supply chains by introducing energy as a key factor in the lot-sizing problem. It will increase the attention to the sustainability of the production-inventory systems as it links environmental concerns to energy needs.