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Food Waste Minimization

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by

Chris Hakes

on 28 January 2014

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Transcript of Food Waste Minimization

Marketing
Agenda
Numbers and facts about global food waste
Definition of food waste
How much food
do we waste?

1/3 is wasted
Main Consequences
842 million people (12 percent of the global population) are unable to meet their dietary energy requirements
Costs for ressources, disposal, ... are incurred
How is food waste defined?
Title
Lorem ipsum
(FAO 1981)
The Food Supply Chain
Harvesting
Storage
Processing
Quality Control
Marketing
Consumer
Insects & Birds
Edible crops left in field
Damages during harvesting (poor technique)
Out-grades
Loss owing to spoiling/brusing at the transportation

Pest & diseases
Inadequate packaging
Contamination
Drying out / Deterioration

Process losses
Contamination in process causing loss of food
Overproduction

Retained samples
Products discarded
Out-grades

Damage during transport: spoilage
Poor handling
Losses caused by lack of cooling
Overordering

Poor storage / stock management
(discarded before serving)
Poor food preparation technique
Leftovers
Post-harvest loss estimation
Problem:
Majority of published values are rounded approximations

Projections of the figures depend on
regional area of examination
included parts of the FSC
definition of food waste
type of food
...
Approaches to minimize
food waste
Shared logistics

e.g. collaborative warehousing
Waste of other resources along the food supply chain
How to get closer to MTO ?
The Food Supply Chain
Harvesting
Storage
Processing
Quality Control
Marketing
Consumer
Foodservices
Traceability in the FSC
Food Waste Minimization
Seminar
Sustainable Operations Management
Victoria Chidiac, Christoph Hakes
21.01.2014
Shelf Life
Shelf life is the length of time that a commodity may be stored without becoming unfit for use or consumption.
(Oxford English Dictionary, 2nd ed.)
Expires on
/ Display by
Best before
(MHD)
Use-By
/ Sell-By
(VD)
Overview
The FSC
Approaches
Hybrid Planning
Outlook


1.
Reduce manufacturing lead time
Audit & lean manufacturing


2.
Increase order lead time
Closer collaboration with retailer


3.
Apply a reactive production
planning approach
Source : Darlington and Rahimifard, 2006
Hybrid planning production approach
In which stage of the food supply chain
does waste incur?
What approaches to minimize food waste
is the recent research following?
How does it work?
Case study using Arena
What are the future trends in the FSC?
What other solutions are there?
Case study using Arena
Conservative
'Expiry date'
Demand for traceability
RFID Tags
Food safety benefits
Supply chain benefits
Less food waste
Unnecessary food waste
Food quality and safety
Source: www.zugutfuerdietonne.de
Group 15
?
Source: FAO, 2011
Case study using Arena
Model
Thank you for your attention!
Back-up
Triangular law :
Assumptions :
2 products :
A
and
B
(same ingredients)

Forecasts are
constants
: FA=70 FB=65

Triangular
probability law for confirmed orders
Case study using Arena
Results :

(for 200 replications)

Limitations :

Supply of ingredients

Big instances difficult
Lack of data or estimations

Neither time nor cost conscious

use by =sell by?
(1)
Wholesome
edible material intended for human
consumption
, arising at any point in the FSC
that is
instead discarded
,
lost
,
degraded or consumed by pests
.
(FAO 1981)
(2)
As (1), but
including edible material that is
intentionally
fed to animals or is a by-product of
food processing

diverted away
from the human food.
(Stuart 2009)
(3)
As (2), but
including over-nutrition
(= energy value of
consumed food
per capita

-
energy value of
food needed
per capita)
(Smil 2004)
Source: WRAP, 2009
Source: FAO, 2011
Guarantying food quality
through temperature control
Food Waste per year
Hybrid two-stage planning
Source : Darlington and Rahimifard, 2006
Case of ready-meals
2 million excess products/week
Other Solutions
Harvesting
Storage
Processing
Quality Control
Consumer
Buy 1, Get 1 Later
Sale on short shelf-life
Give more food to charity organisations
Legal containering
Sell or give overproduction to staff
Hybrid 2-stage planning
Better demand forecasting
Temperature control
Sell "ugly" food
Community gardening
Awareness raising programs
Organize yourself better
Current production and scheduling process at a ready-meal food manufacturer
source :
Akkerman et al.
Harvesting
Processing
n
Product

O
Order

F
Forecast

P
Current
production

A
Surplus

S
Shortage

I
Ingredient

T
Target

Marketing
Identification
Using RFID tags
Hybrid two-stage planning
Temperature
-controlled distribution
Better

demand forecasting

Global Commerce Initiative
Goals :
Get results !

Apply a small variant to their heuristic

Source: GCI, Gapgemini, 2008
Source: GCI, Gapgemini, 2008
Source : Darlington and Rahimifard, 2007
Harvesting
Storage
Processing
Quality
Control
Marketing
Consumer
Full transcript