This document is a research degree proposal form submitted to The Hong Kong Polytechnic University. It proposes a research project on appraising and optimizing the perishable food supply chain management system in Hong Kong. The objectives are to model production and inventory for perishable foods while incorporating risk reduction and sustainability strategies. The project aims to identify issues in Hong Kong's current food supply chain, determine deterioration rates of perishable foods, develop mathematical models for perishable food production and inventory, and provide optimal solutions.

1. FORM RDC/1A
(Revised December 2018)
THE HONG KONG POLYTECHNIC UNIVERSITY
RESEARCH DEGREE PROPOSAL
(To be typewritten by the Applicant)
Note: Please note that the information given in this form will only be used for processing this application.
1. Name of Proposed Chief Supervisor (if applicable):
Professor Felix T.S. Chan
2. Project Title:
APPRAISAL AND OPTIMIZATION OF PERISHABLE FOOD SUPPLY CHAIN
MANAGEMENT SYSTEM IN HONG KONG
3. Project Objectives: (Purpose of proposed investigation)
This work aims to make a more significant contribution to existing research on Food Supply Chain
Management (FSCM) by developing production and inventory models for perishable food
management while incorporating risk and sustainability strategies. At the same time, a compromise
will be made between operational, high-quality, and environmentally sound solutions and risk
reduction techniques. The aim of this study is to model standard issues of planning and managing
production and stocks by integrating risk reduction methods and techniques to assess resistance to
unstable specifications in the food industry. The objectives of the study are:
1. To identify the current supply chain structure in Hong Kong with particular emphasis on
perishable food supply chain (FSC)
2. To appraise the present Supply Chain practices in Hong Kong Food industries.
3. To determine the probability distribution of the deterioration rate of everyday perishable
food items in Hong Kong
4. To conduct a holistic review of available SC literature and their limitations in solving
perishability problems.
5. To develop mathematical models for make-to-stock and make-to-order perishable food
production inventory systems.
6. To provide optimal solutions for the developed model.

2. 4. Scope and Background of Research:
(Please identify key issues/problems to be addressed)
As the world steers in the direction of sustainable development in all areas of life, serious
sustainability issues confront the industry. The need to address the challenges of food wastage and
food quality in recent times calls for the prompt implementation of effective and efficient Food
Supply Chain Management (FCSM).
Generally, food is a basic need for survival, and hence, the food industry plays an essential role in
ensuring that such demand is met through active and effective management practices that take into
account the production, transport, storage, and sustainability requirements that in return affect the
environment, the economy and the society at large. Also, over the years, many companies have been
confronted with severe problems in the supply chain (SC), expanding their capabilities to the level
of failures. Thus, risk management has a significant impact on the stability and resilience of the
entire SC. However, very little research has been done on practical methodologies and models that
incorporate risk reduction and risk mitigation strategies for effective and efficient FSCM of
perishable food products. According to FAO, food losses/wastage accounts for 1/3 of global food
production. Moreover, this estimation of food wastage is equivalent to 1.3 billion tons of food loses
due to the deficiencies and limitations in the current model or approach to FSCM (Ray et al., 2016).
These statistics are saddening and consequently raises the moral question of injustice to the
concerned countries or industries as many human beings are dying of hunger; meanwhile, such
foods could have been donated to charity to help the less privileged survive.
In 2011, 492 million of fruits and vegetables in the world wasted due to inefficient FSC
management system. Despite China being the third-largest producer of food with over 400,000
food-related companies, the foods produce still of low quality and low safety as a result of weak
management strategies in FSC (Ray et al., 2016). Random fluctuation in demand and supply rate,
lousy weather conditions, and increasing consumers' concern for food quality and safety are the
significant challenges facing the current practices in FSC. These issues must be resolved so as have
an increased turnover than the €767 billion recorded in 2011.
Therefore, this research presents a mathematical model on the optimization of the inventory system
of perishable food production in Hong Kong. Multiobjective optimization models will be used to
determine the production and delivery of economically and environmentally sound solutions for the
food supply chain in Hong Kong. Concurrently, risk minimization strategies are incorporated.
Models are checked for real problems by carefully applying real company-specific data.
4.0 INTRODUCTION

3. Due to the increasing trend in the globalization of business operations, SC, especially the Food
industries, are still threatened by the uncertainties, risks, and distortions associated with creating an
effective and efficient SC network. For industry to compete and survive in the present turbulent
environment, flexibility and fast response approach are critical for effective planning in developing
SC optimization models. Conventionally, effective, and efficient SCM focus on minimizing waste
and operating cost while maximizing profit and sustainability among the various stakeholders in an
SC network. As a result of the uncertainties about SC, service level becomes expedient in
measuring the availability of product availability. It can be employed to assess and optimally
conduct business activity (Saengsathien, 2015).
Moreover, inventory, which is one of the engines for SC performance, can significantly affect SC
performance. The cost of storage does not increase the price of the product but includes most of the
cost of satisfying customer needs for affordable products (Chopra and Meindi, 2013). Also,
inadequate demand data, unpredictable forecast, production delay, and inventory stops all create the
possibility of a scenario where a business cannot satisfy an order from existing inventory at a given
time. This situation is called a “stock-out” (arrow, 1958), and to avoid this, the stock is maintained.
Inventory costs typically consist of order costs and shipping or storage costs (Tersine, 1994).
However, in a complex SC, other costs such as storage costs, return costs, pipe costs, damage costs,
transportation, depreciation costs, as well as costs, which are consequent upon money being tied up
in stock (interest rates) are all to be considered. (Saengsathien, 2015; Slack et al., 2010; Langley et
al., 2009; Kraevsky et al., 2007). To minimize these costs, managers should take measures to
reduce the required stock. This is called inventory management. Therefore, you need to determine
when you ordered the product and how many products you ordered during the order cycle. In
making these decisions, managers must consider that a higher level of stocks can increase the value
of stocks, but a lower level of stocks can lead to loss of revenue and poor customer service. In
addition, companies must consider the environmental impact and resources of the products and
services offered, as well as the processes being implemented (Kleindorfer et al., 2005). This
encourages more testing to integrate sustainability issues into existing performance-based SC plans.
Hence, there is a need for further research on the Inventory of food products aimed at maximizing
the overall profitability of SC, including risk reduction factors, and assessment of sustainability.
In light of this, this study is aimed at ensuring an improved comprehension of the issues as well as
identifying information, methods, and ideas that pose relevance to the study.
4.1 RELATED WORKS
4.2 SUPPLY CHAIN MANAGEMENT (SCM)

4. In the modern era, concentrating on the efficiency and effectiveness of distinct business functions in
understanding the strategic importance of planning, managing, and designing the entire SC is a
relatively new practice in today's global market (Saengsathien, 2015; Min and Zhou, 2002).
Organizations no longer compete as a separate division with an explicit trademark, but as an
integral part of the SC, since the performance of all participating participants affects the overall
performance of SC. Therefore, SCM models and practices need to be incorporated into business
processes to facilitate the timely fulfillment of customer requirements.
The concept of SC has been developed since the beginning of problems with material flows
(Forrester, 1961) and have continued to scale up since the 1990s, as supported by a significant
increase in related research published in highly ranked journals, both practitioners and academics
(Saengsathien, 2015; Burgess et al., 2006). In addition to integrated materials and logistics
management, Chen and Paulraj (2004) recognized quality innovation, increased interest in the
market and industrial networks, and influential industry research as the first source of inspiration
for the SC concept.
Though Supply Chain (SC) or Supply Chain Management (SCM) does not have a unique definition,
an SC can still be seen as a network of joint ventures that are connected from ultimate source to the
final destination (Felix Chan et al., 2009). An SC is a network of people, companies, job functions,
technology, and data involved in transforming raw materials into finished goods that are later
transported to the final consumers (Miranbeigi et al., 2015). SC is complex because it involves
various activities and procedures that are divided into functions (inventory, production planning,
purchasing and shipping, logistics, internal and organizational relationships, and implementation
steps) and long-term horizons of the organization (Arshinder et al., 2008).
SC also refers to a logistics network consisting of stocks of raw materials and finished products
moving between suppliers, production centers, warehouses, distribution centers, and retail stores
and facilities (Ritha et al., 2016). SC is viewed to integrate entities like manufacturers, distributors,
suppliers, retailers, third-party logistics dealers, and other middlemen working together either
directly or indirectly to perform some specific functions (Saengsathien, 2015; Min and Zhou, 2002)
such as: (1) purchasing raw materials; (2) transforming these materials into finished or semi-
finished products; (3) increasing the worth of these products; (4) the distribution of this product in
retail stores, which will subsequently provide the product to end-users and customers, and (5)
exchange of information between its SC members so as to maximize the total value created for
consumers.
More so, according to Saengsathien (2015), Stock and Boyer (2009) reviewed 173 SCM definitions
in a series of journals and books, combining suggestions from practitioners, scientists, and hybrid
sources to give a broader meaning. They defined SCM as managing a network of relationships
between interdependent organizations and enterprises comprising of procurement, marketing, raw

5. material suppliers, processing, logistics, and other related entities to accelerate the flow of
resources, data and services from the origin to the final consumers thereby minimizing cost and
maximizing profits.
Modern SC, also termed green logistics are dynamic in nature and somewhat difficult to model
using mathematical methods (Gan and Cheng, 2015; Alharbi et al., 2015; He et al., 2015).
Therefore, their efficient and productive management becomes a daunting task, which most times
requires a lot of information, large amounts of data, and in-depth human knowledge to be
accomplished.
SC can be divided into three types, namely Agile SC, Lean SC, and Hybrid SC (Wang et al., 2004).
A Lean SC makes an effort to remove waste and other non-value added services across the chain
through the application of continuous improvement techniques. More so, to ensure cost efficiency
when required, the customer might not be considered by this SC. Agile SC strives to introduce new
methods and technologies, respond to uncertain market changes and benefit from them, for
example, using information systems or technologies, integrating all business processes, and
introducing innovations throughout the company. The goal of this type of SC is fast delivery and
flexibility in terms of delivery time. An intermediary chain known as Hybrid SC has been proposed,
as well as Lean SC and Agile SC (Saengsathien, 2015). Hybrid SC strives to defer product
differentiation to final assembly to achieve mass customization using special assembly rules.
4.3 SUSTAINABLE SUPPLY CHAIN MANAGEMENT (SSCM)
In the present 21st
century, companies and industries must now get a license to be approved for
“production and delivery,” that is, the way the product is manufactured and delivered must be
accepted by the public (Bloemhof et al., 2013). In a bid to achieve this, if questionable methods are
employed in any of the SC stakeholders, their products will not be allowed to reach the final
consumers. Today, consumers around the world require more food than just nutritional
characteristics. These requirements include safety, quality, integrity, variety, and sustainability
(Bloemhof et al.,2013; Van der Vorst et al.,2009).
The word “sustainable” is described as an action aimed at satisfying current needs without
compromising the ability to meet the needs of a future generation (Baldwin, 2009). For
sustainability to occur, three supports of sustainable development have to be reconciled.
SSCM differs by definition but represents an attempt to integrate the three underlying principles of
sustainable development (e.g., social, environmental, and economic goals) into governance (Roy et
al., 2018). For example, Seuring and Müller (2008) discussed this concept in detail, defining SSCM
as a collaboration between companies in the areas of materials, information and capital
management, and the supply chain, taking a three-dimensional dimension of sustainable

6. development, that is, economic, environmental and social considerations about the needs of
customers and stakeholders
According to Saengsathien (2015), sustainability has become an apt topic in science and industry.
This follows from the understanding that SC results must be measured in terms of economic
benefits, environmental impacts, and social values (Pagell and Wu, 2009). SSCM allows us to
understand and identify complex trade-offs, which is why many company leaders need practical
structures and tools to prioritize and make financially stable and sustainable decisions (Gupta and
Palsule-Desai, 2011).
A review of related research on SSCM shows that many studies have been carried out with respect
to social, economic, and environmental sustainability (Saengsathien, 2015) using various
approaches such as Integer Programming, Mixed Integer Programming, Linear Programming,
Dynamic Programming, Analytical approach, Simulation approach, evolutionary algorithms,
Artificial Neural Network, Fuzzy Logic, etc. However, limited research has been conducted on how
to tackle the inherent challenges of risks and uncertainties associated with perishable food products.
4.4 FOOD SUPPLY CHAIN (FSC)
FSC concept is a new area of SC associated with risks and uncertainties in the production and
inventory system of food products because of the perishability involved. In developed countries like
Hong Kong, food losses/wastage is high at the post-harvest stage of the SC system, and there is a
need to address such challenges to increase profits for the drivers in the chain, and also add values
to members of the SC. The food industry plays a vital role in making the existence of human life
possible because, without food, no man can survive.
FSC starts from farming and passes through transporting to processing, distributing before reaching
the final consumers. Nonetheless, apart from the social problem created as a result of food wastage,
it also poses a threat to the environment because of poor disposal methods adopted by most
companies such as the release of methane gas from the spoiled product that could lead to the ozone
layer depletion. The economic impact appears as an increase in operating costs and a decrease in
productivity of a national GDP as a result of massive losses experienced in wastes. In many
inventory systems, the assumption is that inventory shelf life is definite; meanwhile, perishable
goods are susceptible to specific environmental and weather conditions that guarantee a shorter life
span. Models in inventory are classified under a random life span, fixed lifetime, proportionality
decay life span (Yared et al., 2014). Many researchers in recent times have proposed a simulation-
optimization approach to perishable inventory models, but the limitation of the simulation model is
that it provides more performance indicators for evaluating the behavior of the system rather than
optimizing the system. The result that emerged from simulation analysis is imperative in analyzing

7. and interpreting the functioning of the whole system, but no guarantee of an optimal solution to the
model developed (Hing, K.C. and Felix, T.S., 2009).
4.5 RISK IN FOOD SUPPLY CHAIN (FSC)
FSC is prone to many risks and uncertainties which come as a result of short and unpredictable
shelf life. There are various classifications of risks in SC (Heckmann et al., 2015; Ho et al., 2015).
The commonly used classification of risks in the SC comes from Tang (2006), which divides the
SC risk into disruption and operational risk. The disruption risk is caused by human-made and
natural disasters such as earthquakes, floods, hurricanes, terrorist attacks, economic crisis
(Nakandala et al., 2017). Operational risks arise when performing business processes or SC
activities (Xiaoping, 2016).
Heckmann et al. (2015) claim that the uncertainties inherent in supply, demand, market prices and
prices such as failure of machinery, equipment, supply, or management give rise to operational risk.
Such risk factors disrupt SC and require an appropriate assessment to develop a risk mitigation
strategy. These risks, such as damage, power outages, and damage to machinery, equipment, or
equipment, disrupt the SC and require an appropriate assessment to develop a risk mitigation
strategy
As a result of human and natural causes, SC is turning out to be more at risk (Ali et al., 2018;
Govindan, 2018). FSC seems more complex because food products are not durable goods (Ali and
Nakade, 2017; Singh et al., 2018). Food is an essential prerequisite for human existence. Over time,
the FSC has encountered several factors, including the volatility of food price, inconsistency of
climate, governance issues, food security, and the distribution of FSC values. (Fredriksson and
Liljestrand, 2015; Gokarn and Kuthambalayan, 2017).
Accepting risks for the FSC can improve its resilience, equity, and effectiveness (Govindan, 2018).
To ensure safe and reliable products, each driver of the SC needs to be aware of the risks inside and
outside the network. Numerous studies show that organizations must adhere to formal structures for
identifying and assessing risks in the SC and, ultimately, implement risk reduction plans to
minimize food waste (Khan and Burnes, 2007; de Oliveira et al., 2017).
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10. Form RDC/1A (page 2)
5. Research Methodology:
In this study, the following approaches are to be adopted:
1. Conducting a comprehensive review and analysis of related research of FSCM; hence, this
will help to gain a holistic insight into the specific knowledge gap in FSCM, particularly in the
perishable food industry. Constructive critique and research questions would be raised on the
limitations in the current work and attempts will be made to develop algorithms that combine
risk reduction strategies to improve existing production inventory SC models.
2. Appraisals will be done on the selected food companies in Hong Kong to have an overview
of the current sustainable practices adopted by the companies and the weakness herein.
3. The use of the R program in analyzing the data collected to identify the deterioration pattern
of data of common perishable foods considered
4. Improvement on previous related research mathematical models that can accommodate Big
numerical data.
5. Application of LINGO and other optimization tools for computing solutions of the model
developed.
6. Verification, validation, and testing of results using industry analyzed data. The model
would be further subjected to sensitivity analysis to ensure a robust study.
7. Preparing for sustainable commercial use of the model
MATERIALS/TOOLS
The following software will be used in carrying out the data analysis and model optimization
1. LINGO
2. R program

11. 6. Project Significance and Value:
1. A mathematical model for made-to-stock or made-to-order perishable food production
inventory systems in Hong Kong would be developed.
2. The probability deterioration pattern of common perishable foods in Hong Kong would be
analyzed.
3. Feasible methodologies that will incorporate risk and uncertainty condition strategies in the
production inventory models would be accomplished
4. Implementation and application of the proposed model would be put to testing to solve a
real-life perishable food problem.
5. Improved social, economic and environment sustainability goals
6. Increase in employment rate.
7. Improved sustainability outcomes of food harvest and decrease in wastes, and operating
cost.
/...3

12. Form RDC/1A (page 3)
7. Details of Any External Collaboration:
No external collaboration.
In these circumstances, are there likely to be any complications associated with the
publication of your thesis? Give details.
8. Declaration of the Applicant
I wish to register for a research degree on the basis of the proposal given in this Form
(RDC/1A).
I understand that, during the period of my registration with the University, I may not be a
candidate for any other degree or award.
I understand that, except with the specific permission of the Research Committee, I must
prepare and defend my thesis in English. (You are required to seek permission if another
language, which is considered more appropriate to the subject, is to be used in the
presentation of the thesis. Please submit the justification together with this application.)
I undertake to abide by the general regulations of the University.
Signature Date 05/11/2019
Name KEHINDE TEMITOPE OLUBANJO
During the application period
After completing Sections 1 to 8, the applicant should upload this form to the eAdmission
system at www.polyu.edu.hk/admission.
After admission
RPg students should submit this form to the General Office of the Department after
completing Sections 1 to 8.
/...4

13. Form RDC/1A (page 4)
For internal use only. Applicants should leave Sections 9 and 10 blank.
9. Endorsement by the Proposed Chief Supervisor
9a. Research Ethics/ Safety Approval
[For ethics approval, Chief Supervisor / Temporary Chief Supervisor please read the
Ethical Clearance for Research or Teaching Projects or Investigations Involving Human
Subjects, which are available at Section V of the Handbook for Projects and Grants at
https://www.polyu.edu.hk/ro/staff/handbooks/HD_PG.pdf, and make sure that ethics
approval is obtained if your project involves human subjects. For safety approval, please
read the policy and procedures for safety approval available at the Health, Safety &
Environment Office Homepage. Please attach the approval letter where appropriate.]
I confirm that approval:
* has been * is not required * will be obtained
Obtained before the start
of the project
Human Research Ethics
Animal Research Ethics
Biological Safety
Ionizing Radiation Safety
Non-ionizing Radiation Safety
Chemical Safety
(* Please tick as appropriate)
9b. Research Facilities and Space
I confirm, to the best of my knowledge, that adequate facilities and space are
available to enable the student to conduct and complete the research programme
in an efficient and safe manner.
I would like to request the following additional research facilities and/or space to
enable the student to conduct and complete the research programme in an efficient
and safe manner:
Research Facilities
Space (Other than the
regular space provided by
the Department for RPg
students)
Signature Department/School
(^ Chief Supervisor / Temporary Chief Supervisor)
Name Date
(^ Chief Supervisor / Temporary Chief Supervisor)
(^ Please delete as appropriate)

14. Form RDC/1A (page 5)
10. Recommendation of Head of Affiliated Department in the University
I support this application and understand, on the basis of the Chief Supervisor’s
endorsement, that adequate research facilities and space are available to enable
the student to conduct and complete the research programme in an efficient and
safe manner.
I support this application and agree to provide the additional research facilities
and/or space, as requested by the Chief Supervisor in section 9b above, to enable
the student to conduct and complete the research programme in an efficient and
safe manner.
Signature Date
(Head of Department/Dean of School)
~ The completed form should be kept by the General Office of the Department. ~
RDC/1A