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Research Projects of → Statistics Department

Project Title :
Application of Supply Chain Network Design under Forward Financing and Preservation Technology for Perishable Products: An Empirical Analysis
Principal Investigator and Affiliation : Dr. Monalisha Pattnaik
Co-Investigator and Affiliation :
Funding Agency : Indian Council of Social Science Research (ICSSR), Govt. of India, New Delhi
Amount Sanction and Duration : 1 Lakh   -   May, 2017 to June, 2018
Project Proposal :

India is now the world’s third largest economy in purchasing power of parity terms. Its per capita income has quintupled. Gains in poverty reduction have been the fastest ever the country has experienced. But a lot more remains to be done if the country is to make its “trust with destiny”. Our product markets have been reformed, but the same cannot be said for labour, land, supply chain activities and to some extent capital markets. India still ranks 130th among 189 countries in ease of doing business, trailing countries it wants to compete with by a wide margin. Though in the literature a number of different criteria have developed to design supply chain network for the models; the key managerial policies: integrated facility location, inventory allocation, preservation technology investment, forward financing (fully) and promotional activity investment, which are broadly provided for logistics planners with a high-level optimal solution. In practice, the deterioration rates of sea foods, fruits, milk products, flowers, medicine, and food can be reduced by centralizing warehousing facilities, using refrigeration equipment, or by applying drying or vacuum packing technology. Such goods are commonly distributed through multi-echelon supply chain networks. Also, forward financing has being existed commonly in today’s business. Integrating deteriorating inventory with preservation efforts and considering forward financing are essential in designing supply chains. Specifically, this study will determine the following DC network design decisions: influence area of each; Joint replenishment cycle time at DCs; preservation technology investment; Promotional effort; and economic order quantity.

Objectives of the Study
The objective of this study is to provide logistics network planners with a high-level solution for integrated facility location, inventory allocation, preservation effort problems, and promotional effort by considering perishable items and forward financing (fully). The following objectives have been framed to conduct the study in the context of supply chain network design models:

  • To determine the optimal influence area for each distribution centres (DCs) in cluster i, i=1,2 .......N.
  • To determine the optimal joint replenishment cycle time.
  • To determine the optimal investment in preservation technology.
  • To determine the optimal investment in promotional effort.
  • To determine the optimal order quantity.
  • To determine the effects of the parameters on decision and profits under forward financing.