Circular economy of food: A secondary supply chain model on food waste management incorporating IoT based technology

Abstract

Sustainable development goal (SDG) 12.3 urges reducing food waste to half at retail and consumer level and minimizing the losses along food supply chains by 2030. This study contributes to achieving these targets by incorporating a secondary supply chain with primary food chain, where food waste is controlled through IoT enabled preservation mechanism at retail level, and the yet created food waste along food chain is recycled through a secondary supply chain. Food waste at retail and consumer level is collected at a collection center by incentivizing the waste returns and recycled into secondary product at recycling plant. This study develops a mathematical model, integrating primary food chain with secondary supply chain, targeting waste control and recycling, material recovery, and economic benefits. Integrating IoT technology, product's lifetime-dependent deterioration rate is controlled by adjusting preservation conditions. This technology facilitates online inventory inspections and removal of expired items. Supply chain decisions are optimized for preservation cost and cycle time. Results of numerical experiments reveal the secondary supply chain consumes all the food waste, conserves 62% of material resources, reduces preservation costs by 65.8%, and enhances profits by 49%. IoT enabled preservation strategy extends the food product's lifespan and inventory cycle time, thus, controlling the causes of food waste creation. Finally, this study offers crucial insights for decision-making in food circular supply chains.