Reducing unmet demand and spoilage in cut rose logistics

Abstract

Fresh cut flower supply chains are aware of the need for reducing spoilage and increasing customer satisfaction. This paper focuses on a part of the cut rose supply chain, from auction house to several end customers. A new business mode is considered that would allow end customers to subscribe to florists and have a continuous supply of bouquets of roses. To make this business mode feasible, we propose to benefit from real-time information on roses’ remaining vase life. First, a quality-aware modeling technique is applied to describe supply chain events and quality change of cut roses among several supply chain players. Then, a distributed model predictive control strategy is used to make up-to-date decisions for supply chain players according to the latest logistics and quality information. This approach provides a tool for multiple stakeholders to collaboratively plan the logistics activities in a typical cut rose supply chain based on roses’ estimated vase life in real time. The proposed approach is compared with a currently used business mode in simulation experiments. Results illustrate that the new business mode and the planning approach could reduce unmet demand and spoilage in a cut rose supply chain.