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To limit food waste, retailers require suppliers to only send products with a remaining shelf life of at least a minimum life on receipt (MLOR). Such agreements may, however, substantially increase waste at suppliers. We analyze two scenarios of (1) coordinating the supply chain (SC) and (2) collaborating on setting the MLOR level. We show coordinating is neither the only nor always the best way to reduce waste. In some cases, just collaboration can be an excellent way to reduce waste in the SC.
Cosmetic quality standard and implications on food waste
Pascale Crama1, Yangfang Helen Zhou2, Manman Wang3
1Singapore Management University, Singapore; 2Singapore Management University, Singapore; 3University of Science and Technology of China
A significant amount of fresh produce is wasted in upstream of the food supply chain due to the high cosmetic standard set by retailers. We examine the economic incentives for retailers to adopt such high standards and their impact on food loss. We show how the retailer’s cosmetic standard decision as well as food loss are affected by rejection rate due to high cosmetic standards and consumers’ willing-to-pay for cosmetic-pleasing products.
Picking for expiration dates - the behavior of customers in food retail and implications on food waste
Tobias Winkler1, Manuel Ostermeier2, Alexander Hübner1
1TUM, Germany; 2University of Augsburg, Germany
Grocery retailers target high inventory levels to avoid out-of-stock situations. A side effect thereof is an undesirable customer picking behavior for the freshest or rearmost item. Products with shorter expiration dates remain at the shelf and convert into food waste over time. Prevailing literature related to food waste in retail neglects this impact. Our paper fills this gap by revealing customer picking behavior in retail stores and by connecting this phenomenon to food waste occurrence.
