Optimal Inventory Share Policy Search for e-Grocery Food Supply Network

Abstract

The study focuses on intercompany inventory share policies between e-groceries. Companies are attempting to adapt to the Internet of Things environment considering the increased amount of e-commerce throughout the world as well as the effect of the COVID-19 pandemic. The goal of the study is to create a strong bond between companies by taking advantage of today's technology and helps in the reduction of capital risk. These relationships may also lead to greater market share reduced inventory enhanced delivery services higher quality and faster product development cycles with the help of inventory visibility. This research studies two inventory sharing strategies among e-grocers to improve the supply network's efficiency and responsiveness. The policies considered in this study include share policies based on expiration dates and share policies based on distance - inventory. We use a simulation modeling technique to represent such policies. Besides in an effort to compare how lateral inventory share implementation affects the system performance non-inventory sharing policy has been modeled and these three policies were compared. The goal of this study is to determine the best s S inventory management levels in e-groceries under those rules. Here s and S represent re-order and order-up-to levels for replenishment of products. We are motivated to do this study to decrease food waste in such a food network since management of perishable food products is important owing to their perishable feature. Distance average freshness average inventory and waste product numbers were compared in this project based on the lowest inventory number in line with three main policies. The opt quest tool was used in the arena to find the results. Consequently company owners should choose Expiration Date policy as it has advantages such as total number of waste products and average inventory level.