Probabilistic Analysis of Meat Distribution Logistics: Application of Monte Carlo Simulation

Background : The food sector plays a critical role in promoting population well-being and contributes significantly to economic, social, and environmental development. However, inefficiencies in distribution logistics often result in elevated operational costs, potentially compromising the viability of enterprises in this sector. This study focuses on evaluating the economic feasibility of a fresh beef and pork distribution center in the southern region of Minas Gerais, Brazil. Methods : A case study methodology with a quantitative approach was adopted. Methodological triangulation was applied by combining a traditional Economic Feasibility Analysis (EFA) with a Monte Carlo Simulation to incorporate uncertainty in key input variables. This approach enabled a comprehensive assessment of project viability under both deterministic and probabilistic conditions. Results : The results indicated that distribution price per kilogram, market share, population growth, and per capita meat consumption had a positive correlation with profitability. The economic analysis confirmed the viability of the proposed distribution center, with high expected profitability and a short payback period. The Monte Carlo Simulation revealed that market share, unit price, and consumption levels are the most influential drivers of financial performance, while logistics costs represent the main limiting factor. Conclusions : This study provides a robust, data-driven framework for investment decision-making in food logistics infrastructure. It demonstrates the value of integrating deterministic and probabilistic analyses to improve risk management and strategic planning in the food distribution sector.