Abstract: Wireless sensor technologies open up new possibilities for optimizing product quality and spoilage in the perishables supply chain. In particular, the processing of sensor data such as temperature information allows for the construction of novel issuing policies in retail distribution centres for fresh or frozen goods (e.g., meat, fish, fruits, vegetables, flowers). The objective of the present study is to investigate the potential of sensor-based issuing policies in comparison to classical policies based on identity and expiry information. In a simulation study, we consider a three-echelon supply chain model, including a manufacturer, a distribution centre, and a retail store. We investigate the impact of different combinations of issuing policies and customer withdrawal behaviours on the quality of sold goods and total spoilage. Our results show that sensor-based issuing policies may pose an effective complement to conventional issuing policies. However, they also indicate that wireless sensors are no one-size-fits-all solution and that important trade-offs must be taken into account in the selection of a specific policy.
