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Economic Consequences of Varying Weight Distribution: Case Study for a Third-Party Logistics Company
Blekinge Institute of Technology, Faculty of Engineering, Department of Industrial Economics.
2025 (Swedish)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Background: The processing of food products to maintain the quality of the products have been developing through time, since the foundation of the agricultural society. Modern day food logistics has many facets of processing. One of the main processes is freezing of goods, to preserve the quality of the perishable good. This is done either internally, by the producer of the goods, or by third parties. The third party has a higher degree of possibility to achieve economies of scale, by being able to process multiple goods at a time.Objectives: The study aims to evaluate the economic impact of differing weight distributions, which the third-party processes through a freezer, stores in a freezer, and then thaws, using two methods of thawing on differing energy efficiencies. Specifically, the objective is to analyze the impact of three different weight categories of meat packaging; frozen, stored and thawed using either a microwave, or an air blaster.Methods: The study is based on a case study approach, where it analyses the data provided by a specific third-party company which provides these services. The study examines the revenue, costs, alternative costs, and costumer choice, as per what the economic consequences of the differing meat packaging provides. The data provided by the company has been further extrapolated, based on existing literature, to fill in the gaps in data.Results: Variations in packaging significantly affect processing time for the air blaster, which includes increased operational time, leading to a higher degree of alternative costs. This method should be more used by companies that don’t have a high degree of lead time costs, since it’s the cheaper one, but also provides less profit than the microwave, for the third-party company. The microwave is faster, more profitable, but has a somewhat higher impact on the maintenance of meat quality, where the quality seems to be lower after thawing compared to other methods. Furthermore, the microwave method has higher sensitivity of energy usage based on the weight distribution, but is less time sensitive based on the weight distribution. It is also more expensive for customers to use, but companies that have higher degree of lead time costs could benefit from this faster method of thawing.Conclusion: The weight distribution has a high impact on the speed of processing, energy efficiency, and economic outcome for both parties, but mainly the third party. Optimizing this variable and being knowledgeable of the consequences of your choices for both parties involved, could result in a more profitable and more understanding relationship between the producer and the third-party. There also needs to be more research done on the subject of weight distribution and its economic impact on multiple areas, since this is not the only sector of which this is an important variable for economic outcome.

Place, publisher, year, edition, pages
2025. , p. 64
Keywords [sv]
Viktdistribution, Logistik, Optimering, Tiningsprocess, Köttbehandling
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:bth-27472OAI: oai:DiVA.org:bth-27472DiVA, id: diva2:1939093
Subject / course
Degree Project in Master of Science in Engineering 30,0 hp
Educational program
IEACI Master of Science in Industrial Management and Engineering
Presentation
2025-01-21, Karlskrona, 13:55 (Swedish)
Supervisors
Examiners
Available from: 2025-02-20 Created: 2025-02-20 Last updated: 2025-02-20Bibliographically approved

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CiteExportLink to record
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Citation style
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Output format
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