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: Ion Popa, Sorina-Geanina Stănescu, Anișoara Duică, Elisabeta Ilona Molnar, Mircea Constantin Duică
Format: Article
Language:English
Published: Editura ASE 2025-05-01
Series:Amfiteatru Economic
Subjects:
Online Access:https://www.amfiteatrueconomic.ro/temp/Article_3405.pdf
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author Ion Popa
Sorina-Geanina Stănescu
Anișoara Duică
Elisabeta Ilona Molnar
Mircea Constantin Duică
author_facet Ion Popa
Sorina-Geanina Stănescu
Anișoara Duică
Elisabeta Ilona Molnar
Mircea Constantin Duică
author_sort Ion Popa
collection DOAJ
description 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.
format Article
id doaj-art-001865ca4a4d4a40a363931d3ccf57e3
institution Kabale University
issn 1582-9146
2247-9104
language English
publishDate 2025-05-01
publisher Editura ASE
record_format Article
series Amfiteatru Economic
spelling doaj-art-001865ca4a4d4a40a363931d3ccf57e32025-08-20T03:57:08ZengEditura ASEAmfiteatru Economic1582-91462247-91042025-05-01276929331210.24818/EA/2025/69/293Cost Optimisation of Supply Chains in the Food Industry: Cost Function ModellingIon Popa0https://orcid.org/0000-0003-0703-3828Sorina-Geanina Stănescu1https://orcid.org/0000-0003-1219-3420 Anișoara Duică2https://orcid.org/0000-0003-1457-5764Elisabeta Ilona Molnar 3https://orcid.org/0000-0001-6938-3458Mircea Constantin Duică4https://orcid.org/0000-0002-5106-638XBucharest University of Economic Studies and Academy of Romanian Scientists, RomaniaValahia University of Targoviste and Institute of Multidisciplinary Research for Science and Technology, Targoviste, RomaniaValahia University of Targoviste, RomaniaPartium Christian University of Oradea, RomaniaValahia University of Targoviste, RomaniaThe 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. https://www.amfiteatrueconomic.ro/temp/Article_3405.pdfsupply chaincostefficiencyfood logisticscost function
spellingShingle Ion Popa
Sorina-Geanina Stănescu
Anișoara Duică
Elisabeta Ilona Molnar
Mircea Constantin Duică
Cost Optimisation of Supply Chains in the Food Industry: Cost Function Modelling
Amfiteatru Economic
supply chain
cost
efficiency
food logistics
cost function
title Cost Optimisation of Supply Chains in the Food Industry: Cost Function Modelling
title_full Cost Optimisation of Supply Chains in the Food Industry: Cost Function Modelling
title_fullStr Cost Optimisation of Supply Chains in the Food Industry: Cost Function Modelling
title_full_unstemmed Cost Optimisation of Supply Chains in the Food Industry: Cost Function Modelling
title_short Cost Optimisation of Supply Chains in the Food Industry: Cost Function Modelling
title_sort cost optimisation of supply chains in the food industry cost function modelling
topic supply chain
cost
efficiency
food logistics
cost function
url https://www.amfiteatrueconomic.ro/temp/Article_3405.pdf
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AT sorinageaninastanescu costoptimisationofsupplychainsinthefoodindustrycostfunctionmodelling
AT anisoaraduica costoptimisationofsupplychainsinthefoodindustrycostfunctionmodelling
AT elisabetailonamolnar costoptimisationofsupplychainsinthefoodindustrycostfunctionmodelling
AT mirceaconstantinduica costoptimisationofsupplychainsinthefoodindustrycostfunctionmodelling