An inventory and production model with fuzzy parameters for the food sector

In the food sector, the importance of inventory and production decisions is increasing due to the perishable nature of food. As the results of these decisions, environmental, economic, and social problems arise such as shortages, food waste and production costs. The food production systems are affected by uncertainties caused by demand, delays, and inefficiencies. Thus, some efficient decision-making tools are required to deal with uncertain parameters in food inventory and production problems. In this study, storage and production activities of a catering company that produces daily meals are examined, and it is aimed to minimize the food waste and costs arising from these activities. We propose a linear programming (LP) model considering fuzzy parameters. In this way, the effects of the change in parameters on the total cost, workforce size, inventory and production decisions and food waste minimization are investigated. The presented model makes the decision to keep the raw material in inventory or to use it in production, considering the shelf life and age. Through the fuzzy parameter model, a scenario analysis including 112 different solutions were carried out. In this way, the total cost has been reduced 1.7% and a plan was proposed where production could be carried out with less labor. Similarly, 3% change in demand has been reflected in the fuzzy model, thereby 39% improvement was achieved in the amount of wasted food. The results show that fuzzy parameters have a critical impact on production, stock decisions and total cost at different levels. According to results, considering the uncertainty is an important factor to achieve the economic and environmental sustainability of the food sector. © 2020