Cost Optimisation of Supply Chains in the Food Industry: Cost Function Modelling

The food industry faces complex challenges in managing supply chains, significantly affecting operational performance and costs.This paper explores the critical factors influencing the efficiency of food supply chains, such as product perishability, seasonality, climate change, and high logistics costs.The study uses an applied approach based on modelling a cost function that integrates the main components of supply chain expensesprocurement, transportation, warehousing, production and distributionand how they are affected by industry-specific challenges.The proposed cost function allows for assessing the impact of these variables on total costs and identifying critical areas for optimisation.The results obtained demonstrate that monitoring logistical conditions, adjusting stocks based on seasonal forecasts and optimising transport routes are essential measures to reduce losses and increase the competitiveness of companies in the food industry.The study's applied impact consists of providing a practical cost optimisation tool applicable to manufacturers and distributors.The conclusions emphasise the importance of an integrated approach to risk and cost management in the food industry, providing recommendations for sustainable practices and strategies to increase long-term competitiveness.

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Publication Details

Journal
Amfiteatru Economic
Published
2025-05-01
DOI
https://doi.org/10.24818/ea/2025/69/293
Primary Topic
Supply Chain and Inventory Management
Type
article
Field-Weighted Citation Impact
0.00
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article

Cost Optimisation of Supply Chains in the Food Industry: Cost Function Modelling

Mircea Constantin Duică, Elisabeta Ilona Molnár, Sorina Geanina Stănescu, Ion Popa et al.
Amfiteatru Economic
Supply Chain and Inventory Management
article

Cost Optimisation of Supply Chains in the Food Industry: Cost Function Modelling

Mircea Constantin Duică, Elisabeta Ilona Molnár, Sorina Geanina Stănescu, Ion Popa, Anişoara Duică
article en

Abstract

The food industry faces complex challenges in managing supply chains, significantly affecting operational performance and costs.This paper explores the critical factors influencing the efficiency of food supply chains, such as product perishability, seasonality, climate change, and high logistics costs.The study uses an applied approach based on modelling a cost function that integrates the main components of supply chain expensesprocurement, transportation, warehousing, production and distributionand how they are affected by industry-specific challenges.The proposed cost function allows for assessing the impact of these variables on total costs and identifying critical areas for optimisation.The results obtained demonstrate that monitoring logistical conditions, adjusting stocks based on seasonal forecasts and optimising transport routes are essential measures to reduce losses and increase the competitiveness of companies in the food industry.The study's applied impact consists of providing a practical cost optimisation tool applicable to manufacturers and distributors.The conclusions emphasise the importance of an integrated approach to risk and cost management in the food industry, providing recommendations for sustainable practices and strategies to increase long-term competitiveness.

Amfiteatru EconomicVol. 27(69)
Zero hunger
Openalex Percentile: Top 80%
Supply Chain and Inventory Management
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