Challenging Inventory Issues in Multi-Echelon Supply Chains of Edible Goods due to Varying Deterioration Rate

Supply chain optimization influences customer happiness, which is the foundation of any successful firm. The goal of a multi-echelon supply chain is to deliver the appropriate goods at the right time in the appropriate quantity and at prices that are competitive. The major issue related to multi echelon supply chain is the control / management of inventory it handles. It becomes more sensitive and complicated when the item is perishable in nature with high deterioration rate and that too for edible purpose. Supply chain inventory control is one of the scientific approaches for judging the suitable stock levels at each level or echelons of the supply chain to satisfy the needs of the clients. Stock supply costs in the supply chain include the costs of storing, tracking, and insuring materials. Mismanaged inventories will cause a business significant financial difficulty, whether the mismanagement results in inventory accrual or inventory shortage. In order to provide the desired service level at the lowest possible overall cost, a systematic evaluation of the appropriate quantities to be kept in stock to satisfy the requirements, the strategic location, storage facilities, and recording of the goods or items should be carried out. Optimizing inventory cost components including transportation cost, carrying cost, holding cost, and all other inventory-related costs at all supply chain stages while offering an improved quality of service to the end user is a significant inventory control challenge in a multi-tiered supply chain. When the handled material is perishable, supply chain inventory control becomes more complex, and it becomes even more complex when its deterioration rate is variable in place of constant. This article depicts an outline about the challenging inventory issues related to perishable edible inventory items and how the high deterioration rate and variable deterioration rate influences on their inventory control and management