Value of Information to Improve Daily Operations in High-Density Logistics

Abstract

Agro-food logistics is increasingly challenged to ensure that a wide variety of high-quality products are always available at retail stores. This paper discusses high-density logistics issues caused by more frequent and smaller orders from retailers. Through a case study of the distribution process in a Dutch floricultural supply chain, we demonstrate that using inbound and outbound information flows to plan daily warehouse operations improves the logistics performance. A discrete-event simulation and a simulation-based scheduling algorithm are used as decision-support models to assess the value of information. The results indicate that the higher the density of logistics process, the higher the value of the information. Future research will investigate different uses of information as more types of information become available in the agro-food sector supply chains.