Optimal Control of Distribution Chains for Perishable Goods

Abstract A discrete-time dynamic model of distribution chains for perishable goods is presented together with an approach for its optimal management based on model predictive control. The model is based on a directed graph, with buffers representing the amounts of goods for the various remaining lifetimes, whose time evolution is obtained via balance equations. The amounts of goods to transfer from node to node are chosen by solving a receding-horizon optimal control problem at each time step. The proposed approach allows one to trade among inventory and transportation costs, satisfaction of the customers’ demand, and reduction of the amount of wasted goods, namely goods with no remaining lifetime and thus that have to be discarded from the distribution chain. Preliminary simulation results in three scenarios are reported to show the potential of the proposed approach.