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

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 tran...

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Main Authors: Singh, Adarsh Kumar, Subramanian, Nachiappan, Pawar, Kulwant S., Bai, Ruibin
Format: Article
Published: Springer Verlag (Germany) 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/48341/
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author Singh, Adarsh Kumar
Subramanian, Nachiappan
Pawar, Kulwant S.
Bai, Ruibin
author_facet Singh, Adarsh Kumar
Subramanian, Nachiappan
Pawar, Kulwant S.
Bai, Ruibin
author_sort Singh, Adarsh Kumar
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-483412020-05-04T18:08:34Z https://eprints.nottingham.ac.uk/48341/ Cold chain configuration design: location-allocation decision-making using coordination, value deterioration, and big data approximation Singh, Adarsh Kumar Subramanian, Nachiappan Pawar, Kulwant S. Bai, Ruibin 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. Springer Verlag (Germany) 2016-10-01 Article PeerReviewed Singh, Adarsh Kumar, Subramanian, Nachiappan, Pawar, Kulwant S. and Bai, Ruibin (2016) Cold chain configuration design: location-allocation decision-making using coordination, value deterioration, and big data approximation. Annals of Operations Research . ISSN 1572-9338 Location-allocation problem; Cold chain configuration; Coordination; Big data https://doi.org/10.1007/s10479-016-2332-z doi:10.1007/s10479-016-2332-z doi:10.1007/s10479-016-2332-z
spellingShingle Location-allocation problem; Cold chain configuration; Coordination; Big data
Singh, Adarsh Kumar
Subramanian, Nachiappan
Pawar, Kulwant S.
Bai, Ruibin
Cold chain configuration design: location-allocation decision-making using coordination, value deterioration, and big data approximation
title Cold chain configuration design: location-allocation decision-making using coordination, value deterioration, and big data approximation
title_full Cold chain configuration design: location-allocation decision-making using coordination, value deterioration, and big data approximation
title_fullStr Cold chain configuration design: location-allocation decision-making using coordination, value deterioration, and big data approximation
title_full_unstemmed Cold chain configuration design: location-allocation decision-making using coordination, value deterioration, and big data approximation
title_short Cold chain configuration design: location-allocation decision-making using coordination, value deterioration, and big data approximation
title_sort cold chain configuration design: location-allocation decision-making using coordination, value deterioration, and big data approximation
topic Location-allocation problem; Cold chain configuration; Coordination; Big data
url https://eprints.nottingham.ac.uk/48341/
https://eprints.nottingham.ac.uk/48341/
https://eprints.nottingham.ac.uk/48341/