Application of quality cost and quality loss function in food supply chain systems modeling

Abstract

Today, the food supply chains not only fulfill the human daily needs, but also contribute to the economical development of domestic and in many cases, offshore economics. In this paper, we propose a basic model for evaluating and optimizing the performance of the retailers in food supply chain systems. The basic model can be extended to different scenarios such as (1) producer with retailer functions, (2) producer with no retailer functions, and (3) retailer with no production functions. Within each model, the performance for different stakeholder is evaluated based on the food quality of nutrition value, physical sense, and the opportunity cost of food product risks. © Springer-Verlag Berlin Heidelberg 2013.