Cost Optimisation of Supply Chains in the Food Industry: Cost Function Modelling
The food industry faces complex challenges in managing supply chains, significantly affecting operational performance and costs. This paper explores the critical factors influencing the efficiency of food supply chains, such as product perishability, seasonality, climate change, and high logistic...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Editura ASE
2025-05-01
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| Series: | Amfiteatru Economic |
| Subjects: | |
| Online Access: | https://www.amfiteatrueconomic.ro/temp/Article_3405.pdf |
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| Summary: | The food industry faces complex challenges in managing supply chains, significantly
affecting operational performance and costs. This paper explores the critical factors
influencing the efficiency of food supply chains, such as product perishability, seasonality,
climate change, and high logistics costs. The study uses an applied approach based on
modelling a cost function that integrates the main components of supply chain expenses —
procurement, transportation, warehousing, production and distribution — and how they are
affected by industry-specific challenges. The proposed cost function allows for assessing the
impact of these variables on total costs and identifying critical areas for optimisation. The
results obtained demonstrate that monitoring logistical conditions, adjusting stocks based on
seasonal forecasts and optimising transport routes are essential measures to reduce losses and
increase the competitiveness of companies in the food industry. The study's applied impact
consists of providing a practical cost optimisation tool applicable to manufacturers and
distributors. The conclusions emphasise the importance of an integrated approach to risk and
cost management in the food industry, providing recommendations for sustainable practices
and strategies to increase long-term competitiveness. |
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| ISSN: | 1582-9146 2247-9104 |