Hybrid simulation and optimization approach to design and control fresh product networks

This paper discusses and typifies logistics decision making in a highly complex system, namely an international fresh product supply chain network. Taking the floricultural sector as example case, we develop a conceptual model that incorporates the important system characteristics (e.g. network design, inventories), context factors (e.g. demand and supply uncertainty, perishability) and performance indicators (e.g. costs and responsiveness). We review literature and present quantitative modeling techniques that are used to design, plan and control a supply chain network. Given an assessment on the suitability of modeling techniques for specific characteristics of fresh products, we present a hybrid simulation and optimization modeling approach for the design and control of a fresh product supply chain network.