Andreas Gernert: "Strategic Aging and the Paradox of Food Waste Fees in Decentralized Supply Chains."

Co-authors: Mahyar Taheri, Sandra Transchel

Retailers often implement Minimum Life on Receipt (MLOR) requirements and FIFO issuing policies to ensure product freshness and reduce waste. However, in decentralized supply chains where manufacturers set wholesale prices, these practices may shift waste upstream and impact overall profitability. Moreover, the effectiveness of waste-related policy interventions is unclear when retailers do not control all contract terms. This study investigates how retailers should combine MLOR requirements and issuing policies under stochastic demand and manufacturer pricing power, highlighting the trade-offs between food waste fees, operational choices, profitability, service level, and environmental outcomes.

Prof. Dr. Andreas Gernert is Assistant Professor of Sustainable Operations at Kühne Logistics University (KLU). Before joining KLU, he was a post-doctoral researcher in the Technology and Operations Management department at INSEAD. He obtained his PhD at EBS University in the Institute for Supply Chain Management and his Master of Science in Mathematics at Ulm University. His research focuses on sustainability, covering environmental, social, and economic dimensions. He applies Game Theory, Optimization, and Statistics to: (i) develop policies to improve efficiency and fairness in aid processes, (ii) identify profitable business models for entrepreneurs in developing countries' emergency management, (iii) mitigate financial distress in supply chains, and (iv) study interventions to reduce child labor in agriculture. His work is published in Decision Sciences and Production and Operations Management. Prof. Gernert teaches Operations Management and Sustainable Supply Chain Management, using interactive and student-centered methods like case discussions and educational games.