Development and application of a decision support tool for reduction of product losses in the food-processing industry

In food-processing industries, reduction of product losses is important for improving profitability and sustainability. This paper presents a decision support tool for analyzing the effects of planning decisions on the amount of product losses in the food-processing industry. We created a research framework to collect and analyze data, supporting the development of an Excel-based decision support tool that helps to evaluate different scenarios for the planning decisions and production parameters. The tool was developed in co-operation with and implemented in a real-life dairy plant, where the tool was able to reduce the planning-related losses by nearly 20%. But an equally important result is the insight gained on the interactions between processing, packaging, and intermediate storage. The framework and tool can easily be implemented in other situations.