Discounting and dynamic shelf life (DSL) to reduce fresh food waste at retailers

Uploaded by: Marjolein
Uploaded on: 5th September 2017
Author(s): M.E. Buisman, R. Haijema, J.M. Bloemhof

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Approximately 89 million of tonnes of food is wasted yearly in the EU along the food supply chain. The reasons for food waste by retailers include inappropriate quality control, overstocking and inaccurate forecasting. This study shows that food wasted by retailers can be reduced by discounting old products or by applying a dynamically adjustable expiration date (or dynamic shelf life (DSL)). We developed a simulation based optimisation model to optimise the replenishment and discounting policy of a retailer who sells meat products. DSL outperforms a fixed shelf life (FSL) in terms of profit, waste, shortages and food safety. The benefits of DSL are greater when demand is low or when the shelf life of products is short. Discounting is a successful strategy to reduce food waste for both FSL and DSL. DSL without discounting is more effective than FSL with discounting. Combining DSL and discounting, allows for a further reduction of food waste.

Contact name: Marjolein Buisman
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