IDEAS home Printed from https://ideas.repec.org/a/eee/agisys/v138y2015icp18-30.html
   My bibliography  Save this article

Coordination of perishable crop production using auction mechanisms

Author

Listed:
  • Mason, A. Nicholas
  • Villalobos, J. Rene

Abstract

We present a tactical level planning tool to address the issue of coordinating production of perishable specialty crops under decentralized control and incomplete information. The objective of this research is to address an emerging problem seen in the business model of agricultural cooperatives. These vertically expanded farmer associations market their products jointly. However, within the cooperatives farmers remain competitors seeking their own best interest, simultaneously seeking contracts for the most profitable crops in the most desirable part of the season; this behavior can work to the detriment of the group. The model developed considers the problem of asymmetric information and internal competition within the cooperative, as well as traditional factors relevant to agricultural planning. Thereafter, an auction based coordination mechanism is formulated, which leads production decisions toward a coordinated outcome despite each individual acting independently and on his/her best interest. The mechanism is shown to approximate optimal production targets through focused information discovery and a well-structured contract allocation methodology. The results presented show the viability of implementing such planning scheme in practice as well as the optimality gap under a variety of settings.

Suggested Citation

  • Mason, A. Nicholas & Villalobos, J. Rene, 2015. "Coordination of perishable crop production using auction mechanisms," Agricultural Systems, Elsevier, vol. 138(C), pages 18-30.
    • Handle: RePEc:eee:agisys:v:138:y:2015:i:c:p:18-30
    DOI: 10.1016/j.agsy.2015.04.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308521X15000591
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.agsy.2015.04.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adarsh Kumar Singh & Nachiappan Subramanian & Kulwant Singh Pawar & Ruibin Bai, 2018. "Cold chain configuration design: location-allocation decision-making using coordination, value deterioration, and big data approximation," Annals of Operations Research, Springer, vol. 270(1), pages 433-457, November.
    2. G. Rius-Sorolla & J. Maheut & S. Estellés-Miguel & J. P. Garcia-Sabater, 2020. "Coordination mechanisms with mathematical programming models for decentralized decision-making: a literature review," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 28(1), pages 61-104, March.
    3. Gregorio Rius-Sorolla & Julien Maheut & Sofia Estelles-Miguel & Jose P. Garcia-Sabater, 2021. "Collaborative Distributed Planning with Asymmetric Information. A Technological Driver for Sustainable Development," Sustainability, MDPI, vol. 13(12), pages 1-23, June.
    4. Ana Esteso & M. M. E. Alemany & Angel Ortiz & Shaofeng Liu, 2022. "Optimization model to support sustainable crop planning for reducing unfairness among farmers," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(3), pages 1101-1127, September.
    5. Ranjeet Rajput & Sri Vanamalla Venkataraman, 2022. "A violent market price contract for agribusiness supply chain," Annals of Operations Research, Springer, vol. 315(2), pages 1971-1996, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agisys:v:138:y:2015:i:c:p:18-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/agsy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.