A Cost-Benefit Analysis Simulation for the Digitalisation of Cold Supply Chains

Area of Science:

• Operations Research
• Supply Chain Management
• Food Science

Background:

• Cold chain logistics are critical for perishable goods like refrigerated beef.
• Digitalization offers potential for optimizing cold chain operations.
• Simulation modeling can evaluate complex system changes.

Purpose of the Study:

• To investigate the use of simulation as a decision-making tool for digitalizing cold distribution chains.
• To predict the cost-benefits of implementing digitalization in refrigerated beef supply chains.
• To assess the impact of digitalization on waste reduction and delivery efficiency.

Main Methods:

• Comparative simulation of digitalized versus non-digitalized cold supply chains.
• Modeling of refrigerated beef distribution in the UK.
• Inclusion of stochastic parameters like weather and demand fluctuations.
• Qualitative assessment of customer satisfaction and product quality impacts.

Main Results:

• Digitalization can reduce beef waste in the cold chain.
• Fewer miles are driven per successful delivery in digitalized supply chains.
• Simulation provides accurate predictions of cost-benefits for increased sensorization.
• Identified potential challenges and estimated economic benefits of digitalization.

Conclusions:

• Simulation is a valuable tool for informed decision-making regarding food supply chain digitalization.
• Digitalization can lead to significant cost savings and operational efficiencies.
• Simulation aids in understanding the broader impacts of digital technologies on supply chains.