Issues In Supply Chain Planning Of Fruits And Vegetables .

IMS Business School Presents Doctoral Colloquium – 2017production standards and required food safety requirements(Berdegue et al., 2005; Dries et al., 2009) [6, 13].The trends towards rapid agri-food production cycles, volatilenature of product demands, complex methods of agri-supplychain partnerships are reflected by the emergence of contractfarming and farmer cooperatives and the perishable nature ofthe agri-food products (Christopher et al., 2006) [6]. Contractswith individual farmers are based on soil quality, land size,history, interest and attitude for a given period (Jia et al.,2011) [18]. Farmer cooperatives help supermarkets to hire thelabor force of contract farmers, make capital investments andproduce vegetables of good quality by using latest technology(Schipmann et al., 2011) [33]. Supermarkets help the contractfarmers by providing quality seeds, inputs and extensionservices. Collaborative efforts in terms of investment,resource sharing, and crop production, knowledge andinformation sharing, marketing and R&D for optimaltechnology and strategy development are very much projectspecific (for a specific fruit or vegetable) and short-term(Byrne et al., 2006; Halley et al., 2009; Lee et al., 2011) [9, 15,22]. Thus, operational competencies are required to bepossessed by members of the agri-supply chain network tosustain relationships (Halley et al., 2009) [15].2. A Brief Literature ReviewThe objective of this paper is to present a brief literaturereview with the focus on identifying the issues in the supplychain planning of fruits and vegetables in agri-food supplychains and recommending measures to solve these issues. Theresearch papers were collected for ten years (2006-2015) andpapers dealing with agri-fresh produce (fruits and vegetables)were considered. Citations of papers related to the supply offresh fruits and vegetables were referred to find more relevantpapers addressing supply side issues. Thus a crossreferencing approach was adopted to find other relevantpapers. We reviewed the works of some of the leadingauthors with details like the year of publication of their work,the objectives of the reviewed work, the methodologyadopted, and the tools employed for the study. We alsostudied the results derived from the study and identified thegaps in the research.Schepers et al. (2006) [32] described the purchase frequency ofthe consumer segments and under what conditions a ready-toeat strategy created value for a retailer, trader, and grower in afruit production chain and illustrated how factors other thanprice optimized total chain profit and profit per player. Asystem dynamics model was used as a discussion supporttool. Sub-models were also created using formalmathematical equations and solved. The model showed thevertical cooperation between trade partners on the level offruit ripeness and variation in the ripeness factor. It showedthat at minimum levels of variability in quality, profits for allbusiness partners are highest. The model also indicated thatproduct loss due to over-ripeness in retail chains should beconsidered and optimized. Ripeness factor with more specificdynamics of fruit ripening to keep quality and reduce productloss can be addressed. All fruits differ in the variance inripeness hence further research is required in the area ofcalibration and validation.ISBN: 978-93-85895-57-9Ruben et al. (2007) [30] analyzed the factors motivating Asiansupermarkets’ sourcing alternatives as wholesale systems orpreferred supplier systems. A detailed assessment of supplychain organization was done, and a field survey wasconducted. Information on variable cost and fixed cost in thesupply chain, searching cost, monitoring costs was collected.Insights from transaction cost theory were used to comparetwo case studies of two major supermarkets chains for theirvegetable procurement practices. The findings suggested thatthe governance costs were more than the actual investmentcosts for supermarket chains and moving from wholesalesystem to the preferred supplier system would involvesignificant fixed cost which could only be met by reducinggovernance costs. The focus should be gradually moved fromchain optimization towards strengthening buyer-supplierrelationships. With the expansion of the supermarket's chains,the smallholder farmers will be gradually neglected and willbe progressively excluded with only some out growers linkedto the farmer organizations or large- scale suppliers. Hencesupply chain strategies for strengthening the position of thesmallholder farmers could be designed after further analysisand investigation.Ahmad et al. (2008) [1] examined the current practices ofquality assurance in the supply chain of fruits and vegetablesin Hungary and proposed and re-designed quality orientedbusiness processes required for an integrated supply chainsystem. A questionnaire technique was employed by using apre-tested questionnaire and interviews were conducted.ADONIS tool was used. The quality gaps have beenidentified in the whole chain as some units of operations ofquality assurance were not practiced in the SCM. The qualityassurance system must be implemented from farm to fork todevelop safe food management system. Mind mappingtechnique used was a new method of collecting information.The research work can be further extended by developingintegrated models of the supply chain of fruits and vegetableswith quality oriented business processes.Ferrer et al. (2008) [14] optimally scheduled wine grapeharvesting operations of harvest scheduling, labor allocation,and routing decisions on operational costs and grape quality.A mixed integer linear programming model which includes aTSP formulation that considers an objective of costminimization along with an objective of quality maximizationof harvested grapes was solved using standard optimizationsoftware. Travelling salesman problem using MTZformulation was solved using heuristic approach and testedthrough a case study. AMPl was used for coding, and Cplex7.1 on DEC Alpha machine was used for solving, GLPKsolver has also been used. One of the main contributions ofthis model is the quality loss function included in theobjective function. The optimal plan proposed by the modelhad shown a decrease in the operational and labor costs. Themodel provides a useful tool for large-scale resourceallocation. The proposed model not only provides a solutionto a relevant practical problem in industrial sector but is also acontribution to the use of Operations Research in otheragricultural sectors. The model covers a fixed planninghorizon which can be variable. The blocks of grapecultivation can only be assigned to a single winery which canInternational Journal of Commerce and Management Research, Toll Free: 1800-1234-07038

IMS Business School Presents Doctoral Colloquium – 2017be extended to include alternative wineries. The modeldoesn't take into account the inventory of the harvestedgrapes as everything harvested has to be directed towards theproduction plant due to deterioration of the grapes. Hence thelower quality grapes are considered waste and are discarded.et al. (2009) [8] examined and studied the optimal supplychain design strategies for a particular type of perishableproduct(fresh produce) melons and sweet corns andminimized lost value in the post-harvest supply chain of theseperishable products. A model was developed using theproduct's marginal value of time using an exponential decayfunction. The model was then validated through a case study.One of the important findings of this work was thatcoordination across the supply chain was not a pre-requisitefor supply chain optimization. The marginal cost of time for aproduct was used as a tool to analyze the optimal supplychain strategy. The model can be further extended withmodifications towards other fresh produce that mature in thefield and reach their peak value at the time of harvest. Themodel doesn't include an inventory carrying cost, and thelocation of the facilities was not taken into account whichwould affect the quality of the produce after it has beenharvested and needs to be transferred to the cooling shed.These issues can be addressed in future research.Arumugam et al. (2010) [5] identified the factors thatmotivated farmers to participate in the contract farming andpractices for marketing their produce (fresh fruits andvegetables) in the Peninsular Malaysia. A survey method wasused and a semi-structured questionnaire was designed tocollect primary data through interviews. The Stratifiedsampling method was used. Descriptive analysis, factoranalysis, and reliability analysis were used to analyze thedata. The factors that motivated farmers to participate incontract farming were identified as market stability, access toinputs, marketing information, and technology, transfer oftechnology to improve farming practices, indirect benefits.The work can be further extended by identifying the factorswhich lead to the farmer selection by agri-food retail chains(supermarket) and selection of the optimum supplier(farmer/wholesaler/farmer cooperative).dos Santos et al. (2010) [12] developed a linear mixed-integermodel formulation for sustainable vegetable crop supplyproblem with variables indicating the plot size associatedwith a crop rotation schedule with the aim to meet the knowndemand of crops meeting ecologically-based productionconstraints. A linear mixed-integer programming model wasdeveloped with the exponential number of variables and eachassociated with a feasible crop rotation plan. A large numberof variables were solved using column-generation algorithm.The model was solved with the help of CPLEX 11.0.A set ofcomputational tests using the real world data verify theperformance of the column-generation approach and theefficacy of the proposed model. The performance was testedfor a different number of cropping areas. The model may befurther extended to incorporate additional characteristics offield conditions.Verdouw et al. (2010) [37] proposed a reference process modelfor demand-driven fruit supply chains and its application infruit supply chains. A design-testing approach usingISBN: 978-93-85895-57-9deductive reasoning was used. Data was collected through indepth structured interviews and structured questionnaires.SCOR-model was used for design with Product Flow Models,Thread Diagrams and Business Process Diagrams. A Casestudy was used for analysis. Business Process ModelingNotation (BPMN) was used. The process models help toprovide a consistent set of process models which areunderstandable by the managers. The main contribution of thework was that it describes how building blocks can be used tocompose specific configurations using pre-configuredtemplates of the fruit supply chains which in turn help theusers to configure their templates using these building blocks.The reference model can be further developed iteratively bypilot runs. The model can also be implemented in operationalsupply chain information systems and how they can beintegrated. Tool support and video demonstrations could bedeveloped for configuration of process models. Futureresearch could help in the extension of the model to otherprocesses. Institutionalizing the model for its maintenanceand further development could be a significant future researchissue.Ahumada et al. (2011) [2] proposed an operational model forshort-term planning decisions in fresh produce industry whichwould assist in making production and distribution decisionsduring harvest season with the objective of maximization ofrevenue. A mixed-integer programming (MIP) model wasdeveloped. A case-study based on bell peppers and tomatoeswas used to show the validity of the proposed model. Themain contribution of the proposed model was the integrationof the biological functions with mixed-integer programmingfor determination of best harvest and distribution practices forshort periods. The proposed model could be applied toimprove current labor-management policies. The proposedmodel could be useful to growers for maximizing revenuesunder varying climatic and marketing conditions and potentialcustomers for determining profitability and analyzing newmarkets. As the proposed MIP model can be solved withcommercially available solvers, it can be extended to exploremore parameters for perishable produce in short termplanning.Jang et al. (2011) [17] studied and developed models forsupply chain for small agricultural enterprises. Mathematicaland experimental modeling techniques were used. Theproposed models would help in developing strategic planningand decision–making tools to keep the small agriculturalenterprises in market competition, and this scientific approachwill help them to reduce costs and improve their service. Thepricing strategy for multiple products could be investigated infuture work with more focus towards other parameters ofquality and customer service rather than size of the enterprise.Jia et al. (2011) [18] investigated the contractual agreementsbetween Farmer Professional Cooperatives (FPC’s) andbuyers in China. A conceptual framework was developed, anda research hypothesis was drawn using transaction costapproach. Data was collected through a questionnaire-basedsurvey. The descriptive analysis was used, and estimation wasdone using Ordinary Least Square Estimator (OLS).The mainfindings of the proposed framework were that verticalcoordination at the farm gate level through farmerInternational Journal of Commerce and Management Research, Toll Free: 1800-1234-07039

IMS Business School Presents Doctoral Colloquium – 2017cooperatives and associations in the agri-food sector isemerging in China. These cooperatives followed both oraland written contracts. Vertical coordination through contractsis market-specific and contracts were not dependent ontransactional attributes. The vertical coordination among theFPC's was achieved through branding. The proposed workcould be further extended in the direction of developingstrategies for branding and certification. The inclusion ofparameters of dedicated suppliers, individual farmer’sdecisions, characteristics of buyers could be a possibleextension of the proposed framework.Rong et al. (2011) [29] modelled food quality degradation indecision making and integrated it with a mixed-integer linearprogramming model used for production and distributionplanning. A model using linear mixed-integer programmingwas developed. The model was applied in an illustrative casestudy of a supply chain of bell peppers and was implementedin ILOG's OPL Studio in combination with CPLEX 10.2optimization software. The product quality was included inthe food supply chain modeling thus integrating the aspects ofmanaging product quality and controlling temperature indecision making in supply chain management. The modelcould also help in evaluating performance regarding cost andquality. The model can be further extended to analyze adetailed impact of temperature fluctuations by the inclusionof quality decay models. Future research could includemultiple products instead of single product. Further researchmay help in developing more industry-specific models for abroad range of agricultural commodities and food industries.Perdana (2012) [26] developed Fresh Fruits and Vegetables(FFV) supply chain management system by application ofTriple Helix Model on improving the small farmer's access toexport market through interaction between different supplychain partners. A case study method was used to discuss therole of Triple Helix Model in the development of FFV supplychain to meet global market demands. Causal Loop Diagram(CLD) as a part of system thinking approach (a part of systemdynamics) was used as an analysis tool. The triple helixmodel shared knowledge and experience between differentchain actors and thus this multi-stakeholder interactioninvolved the small farmers in the FFV export supply chainand created a set of relationship rules at production, supply,and agricultural level which in turn helps in reducing riskswhich occur in its development. An information system canbe developed to measure the performance of the multistakeholder interaction between different chain partners,policy simulator can also be developed, and the replication ofthis model can be applied to other areas after further research.Sutopo et al. (2012) [35] proposed an agri-food supply chainmodel with emphasis on the corporate socialresponsibility(CSR) activities thereby helping farmers tosolve their internal problems. The Agri-food supply chainmodel was developed using the mixed-integer linearprogramming (MILP) with multi-objective optimization.Branch and bound algorithm was used to solve the MILPformulation using ILOG CPLEX Academic Version solver.The proposed model incorporated the effect of productdeterioration on the revenue of the farmer and the retailer.The findings helped to determine which producers requiredISBN: 978-93-85895-57-9training skills, amount and timing of supply, total costallocation for CSR activities and how improving qualitywould lengthen the deterioration time of vegetables. Theproposed work can be extended further by considering theeffects of variable factors such as price, demand, and supply.Farmers capabilities to access the capital and market andincorporate new farming technologies can be another possibleextension of the proposed work.Bezat-Jarzębowska et al. (2013) [7] studied the concept ofefficiency-focused economic modeling of the competitivenessin agri-food sector on the producer’s end. The efficiencyfocused modeling was done using SFA method (StochasticFrontier Approach) for assessment of farm’s productivity.Data collection was carried out within the framework ofFADN (Farm Accountancy Data Network), and CobbDouglas and trans-logarithmic functions were applied foranalysis. The SFA method considered the impact of weather,market shocks or statistical noise and also potentialinefficiency which were not taken into consideration in adeterministic model. The study proved that the economicgrowth in agricultural sector depends on competitivenessbased on efficiency improvement. The model can be furtherextended to be used for policy implications and managementpractices in the agricultural sector and other areas byconsidering other factors like production quality indicators ininput and output, ownership form, and managerialcharacteristics.Sudarshan et al. (2013) [34] estimated the post-harvest lossesin pomegranate fruit at different stages of supply chain anddeveloped appropriate strategies to reduce these losses. Themulti-purpose random sampling technique was used and datawas collected using pre-tested questionnaire and interview.Hypothesis-testing was done. Pre-harvest managementpractices can help in reducing the post-harvest losses. Aregional Integrated Post-Harvest Management Center(IPHMC) had also been proposed. Post-harvest technologiescould be employed to avoid the losses throughout the processby providing proper training and guidance to rural, urbanhorticultural growers. The indigenous fruits and vegetableswaste utilization with emphasis on the design of effectivestrategies for this purpose can be a possible extension of thecurrent research work. The post-harvest informationmanagement and traceability throughout the supply chain canalso be explored as future work.Iakovou et al. (2014) [16] developed a methodologicalframework which aimed to minimize the environmentalburden and to maximize supply chain sustainability for theagri-food sector through the implementation of a green supplychain. A conceptual framework was developed whichholistically tackles all aspects of green supply chain in theagri-food sector. Six different thematic areas were identified,their interdependencies and their impact on proposed supplychain management framework were studied. The optimizationof the farming practices aimed towards increasing thefarmer's income with the reduction in operational cost.Biofuel production could have a positive impact on ruraldevelopment and generate agricultural employment. It alsointroduced an intelligent logistics network to reduce harvestand transportation energy input. The future research can focusInternational Journal of Commerce and Management Research, Toll Free: 1800-1234-07040

IMS Business School Presents Doctoral Colloquium – 2017on the development of the operations of the green supplychains that could reduce an organization's carbon footprint,reduce costs, and design such supply chains and theiroperations replacing less sustainable practices and improvingthe reputation with customers, investors, and stakeholderswith increased profitability.Anastasiadis et al. (2015) [4] analyzed the interactions ofmarket players at each stage in the agri-food sectorthroughout the whole chain from production to consumptionregarding upgrading the emergent traditional supply chaininto new efficient supply chains. Qualitative methods using awhole chain approach were employed. Research questionswere drawn. Data was collected through Judgementalsampling, snowball sampling approach, and semi-structuredinterviews. A case study approach was used as aninvestigating tool. There was an obstruction in theinformation sharing by certain stakeholders of the emergentsupply chains. The findings also suggested a lack ofcommitment, collaboration issues, and coordination problemamong the supply chain members leading to mistrust amongthem. The nature of the new opportunities was poorlyunderstood which obstructs further development of theemergent supply chains. The mechanism of collectiveemergence has been revealed in this study which wouldprovide insights to overcome the obstacles. Furtherinvestigation using a similar approach with minormodifications can be applied in a wider context to othereconomies where emergent traditional supply chains are intheir infancy. The extension of this work can be in thedirection of designing appropriate supply chain strategiestowards increasing inter-firm collaboration, co-ordination andcommitment among the supply chain members towardsbuilding an efficient supply chain.Negi et al. (2015) [25] identified the problems affecting thesupply chain of fruits and vegetable sector in India andsuggested appropriate supply chain strategies to overcome theproblems and challenges. Descriptive research was used inthe study with a review of existing literature dealing with theissues in the supply chain of fruits and vegetables and otheragricultural products. Descriptive research was done with athorough review of the existing literature studied undervarious factors from the perspectives of fruits and vegetablesupply chain. The inefficient supply chains with inadequatecold chain facilities, lack of coordination between the supplychain partners resulting in the post-harvest losses and wastageduring transit, and the poor quality of produce reaching theconsumers were the major issues identified in the study. Tostrengthen supply chains of fruits and vegetable sector inIndia, appropriate models aimed at increasing the shelf-life ofthe fresh produce thus decreasing the post-harvest losses andwastage are required to be developed. The study can befurther extended with empirical tests and validated throughcase studies on fresh produce supply chains and on otherrelated sectors like milk, beverages, etc.Zhong et al. (2015) [38] studied the information needs andsharing strategies among farmers and vendors in Chengdu,China. Data collection through convenience sampling andsurvey was conducted through interviews. Chi-square tests,Independent-sample t-tests were employed to answer researchISBN: 978-93-85895-57-9questions. Structured Equation Modeling (SEM) wasperformed to explore factors motivating farmers and vendorsto join information centers. The study helped in bridging theinformation gap between farmers and vendors and local orprivate farmer-based organizations. These organizationscould promote information sharing on specific crops andmarketing systems. The ease of availability of information tofarmers is the core predictor of farmer's willingness to join aninformation center. The findings also indicated that thereexisted some significant differences between farmers andvendors regarding access of infor

Issues in supply chain planning of Fruits and Vegetables in Agri-food supply chain: A review of certain aspects Shivani Agarwal Research Scholar, Jiwaji University, Gwalior Abstract Fresh Fruits and Vegetable (FFV) are one of the most important component of a retail chain (supermarket) and act as a strategic product in attracting the customers.