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Influence of consumer purchasing behaviour on the production planning of perishable food

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Abstract

This paper addresses the impact of consumer purchasing behaviour on the production planning of perishable food products for companies operating in the fast moving consumer goods using direct store delivery. The research presented here builds on previous marketing studies related to the effects of expiry dates in order to derive mathematical formulae, which express the age dependent demand for different categories of perishable products. These demand expressions take into account both customer willingness to pay and product quality risk. The paper presents deterministic and stochastic production planning models, which incorporate the customer’s eagerness to pick up the fresher products available. Results indicate that model approximations neglecting the fact that customers pick up the fresher products or considering that all products have the same product quality risk have a reduced impact on profit losses. On the other hand, not considering the decreasing customer willingness to pay has an important impact both on the profit losses and on the amount of spoiled products.

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Acknowledgments

The first author appreciate the support of the FCT Grant SFRH/BPD/89861/2012 and the FCT Project PTDC/EGE-GES/104443/2008.

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Authors and Affiliations

  1. INESC TEC, Faculdade de Engenharia, Universidade do Porto, Rua Dr. Roberto Frias, s/n, 4600-001 , Porto, Portugal

    P. Amorim & B. Almada-Lobo

  2. Instituto de Ciências Matemáticas e de Computação, Universidade de São Paulo, Av. do Trabalhador São-Carlense, 400, CP. 668, São Carlos, SP, 13560-970, Brazil

    A. M. Costa

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  1. P. Amorim
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  3. B. Almada-Lobo
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Correspondence to P. Amorim.

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Amorim, P., Costa, A.M. & Almada-Lobo, B. Influence of consumer purchasing behaviour on the production planning of perishable food. OR Spectrum 36, 669–692 (2014). https://doi.org/10.1007/s00291-013-0324-9

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