IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v60y2017icp62-76.html
   My bibliography  Save this article

Quality in competitive fresh produce supply chains with application to farmers' markets

Author

Listed:
  • Besik, Deniz
  • Nagurney, Anna

Abstract

Fresh produce supply chains have special characteristics, notably, that the quality of the product (fruit or vegetable) deteriorates continuously over time, even under ideal conditions. In this paper, we begin with explicit formulae for fresh produce quality deterioration based on chemistry and temperature and provide a path-based framework. We then focus on farmers' markets, the popularity of which has been growing due to consumers' greater awareness of and interest in product quality and emphasis on health. Farmers' markets, as examples of direct to consumer channels and shorter supply chains, are studied in the framework of game theory in both uncapacitated and capacitated versions. A case study of apples in Massachusetts, under various scenarios, including production disruptions, provides quantitative evidence of the applicability of our supply chain network approach.

Suggested Citation

  • Besik, Deniz & Nagurney, Anna, 2017. "Quality in competitive fresh produce supply chains with application to farmers' markets," Socio-Economic Planning Sciences, Elsevier, vol. 60(C), pages 62-76.
    • Handle: RePEc:eee:soceps:v:60:y:2017:i:c:p:62-76
    DOI: 10.1016/j.seps.2017.03.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012116302129
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.seps.2017.03.001?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.

    References listed on IDEAS

    as
    1. Nagurney, Anna & Dupuis, Paul & Zhang, Ding, 1994. "A Dynamical Systems Approach for Network Oligopolies and Variational Inequalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 28(3), pages 263-283, September.
    2. Tijskens, L. M. M. & Polderdijk, J. J., 1996. "A generic model for keeping quality of vegetable produce during storage and distribution," Agricultural Systems, Elsevier, vol. 51(4), pages 431-452, August.
    3. Michael Ketzenberg & Jacqueline Bloemhof & Gary Gaukler, 2015. "Managing Perishables with Time and Temperature History," Production and Operations Management, Production and Operations Management Society, vol. 24(1), pages 54-70, January.
    4. Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
    5. Bond, Jennifer Keeling & Thilmany, Dawn D. & Bond, Craig A., 2009. "What Influences Consumer Choice of Fresh Produce Purchase Location?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(1), pages 1-14, April.
    6. Jonathan Murdoch & Terry Marsden & Jo Banks, 2000. "Quality, Nature, and Embeddedness: Some Theoretical Considerations in the Context of the Food Sector," Economic Geography, Taylor & Francis Journals, vol. 76(2), pages 107-125, April.
    7. Steven Nahmias, 2011. "Perishable Inventory Systems," International Series in Operations Research and Management Science, Springer, edition 1, number 978-1-4419-7999-5, December.
    8. Timothy J. Lowe & Paul V. Preckel, 2004. "Decision Technologies for Agribusiness Problems: A Brief Review of Selected Literature and a Call for Research," Manufacturing & Service Operations Management, INFORMS, vol. 6(3), pages 201-208.
    9. Anna Nagurney, 2006. "Supply Chain Network Economics," Books, Edward Elgar Publishing, number 4242.
    10. Sara Fabbrizzi & Silvio Menghini & Nicola Marinelli, 2014. "The Short Food Supply Chain: A Concrete Example of Sustainability. A Literature Review," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2014(2), pages 189-206.
    11. Tong, Daoqin & Ren, Fang & Mack, James, 2012. "Locating farmers’ markets with an incorporation of spatio-temporal variation," Socio-Economic Planning Sciences, Elsevier, vol. 46(2), pages 149-156.
    12. Omar Ahumada & J. Villalobos, 2011. "A tactical model for planning the production and distribution of fresh produce," Annals of Operations Research, Springer, vol. 190(1), pages 339-358, October.
    13. Nagurney, Anna, 2010. "Supply chain network design under profit maximization and oligopolistic competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(3), pages 281-294, May.
    14. Rong, Aiying & Akkerman, Renzo & Grunow, Martin, 2011. "An optimization approach for managing fresh food quality throughout the supply chain," International Journal of Production Economics, Elsevier, vol. 131(1), pages 421-429, May.
    15. Masoumi, Amir H. & Yu, Min & Nagurney, Anna, 2012. "A supply chain generalized network oligopoly model for pharmaceuticals under brand differentiation and perishability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(4), pages 762-780.
    16. Yu, Min & Nagurney, Anna, 2013. "Competitive food supply chain networks with application to fresh produce," European Journal of Operational Research, Elsevier, vol. 224(2), pages 273-282.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Ma, Jun & Nault, Barrie R. & Tu, Yiliu (Paul), 2023. "Customer segmentation, pricing, and lead time decisions: A stochastic-user-equilibrium perspective," International Journal of Production Economics, Elsevier, vol. 264(C).
    2. Fahmy, Sherif A. & Zaki, Areej M. & Gaber, Yomna H., 2023. "Optimal locations and flow allocations for aggregation hubs in supply chain networks of perishable products," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    3. Xiaowei Hu & Peng Li, 2021. "Relief and Stimulus in A Cross-sector Multi-product Scarce Resource Supply Chain Network," Papers 2101.09373, arXiv.org, revised Nov 2022.
    4. Wang, Haiyan & Zhan, Sha-lei & Ng, Chi To & Cheng, T.C.E., 2020. "Coordinating quality, time, and carbon emissions in perishable food production: A new technology integrating GERT and the Bayesian approach," International Journal of Production Economics, Elsevier, vol. 225(C).
    5. Anna Nagurney & Dana Hassani & Oleg Nivievskyi & Pavlo Martyshev, 2023. "Exchange rates and multicommodity international trade: insights from spatial price equilibrium modeling with policy instruments via variational inequalities," Journal of Global Optimization, Springer, vol. 87(1), pages 1-30, September.
    6. Sazvar, Zeinab & Sepehri, Mehran, 2020. "An integrated replenishment-recruitment policy in a sustainable retailing system for deteriorating products," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    7. Ge, Houtian & Goetz, Stephan J. & Cleary, Rebecca & Yi, Jing & Gómez, Miguel I., 2022. "Facility locations in the fresh produce supply chain: An integration of optimization and empirical methods," International Journal of Production Economics, Elsevier, vol. 249(C).
    8. Hu, Xiaowei & Li, Peng, 2022. "Relief and stimulus in a cross-sector multi-product scarce resource supply chain network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    9. Pilar, Ladislav & Balcarova, Tereza & Rojik, Stanislav & Ticha, Ivana & Polakova, Jana, 2018. "Customer experience with farmers’ markets: what hashtags can reveal," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    10. Besik, Deniz & Nagurney, Anna & Dutta, Pritha, 2023. "An integrated multitiered supply chain network model of competing agricultural firms and processing firms: The case of fresh produce and quality," European Journal of Operational Research, Elsevier, vol. 307(1), pages 364-381.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yu, Min & Nagurney, Anna, 2013. "Competitive food supply chain networks with application to fresh produce," European Journal of Operational Research, Elsevier, vol. 224(2), pages 273-282.
    2. Nagurney, Anna & Li, Dong & Nagurney, Ladimer S., 2014. "Spatial price equilibrium with information asymmetry in quality and minimum quality standards," International Journal of Production Economics, Elsevier, vol. 158(C), pages 300-313.
    3. Besik, Deniz & Nagurney, Anna & Dutta, Pritha, 2023. "An integrated multitiered supply chain network model of competing agricultural firms and processing firms: The case of fresh produce and quality," European Journal of Operational Research, Elsevier, vol. 307(1), pages 364-381.
    4. Soto-Silva, Wladimir E. & Nadal-Roig, Esteve & González-Araya, Marcela C. & Pla-Aragones, Lluis M., 2016. "Operational research models applied to the fresh fruit supply chain," European Journal of Operational Research, Elsevier, vol. 251(2), pages 345-355.
    5. V. R. Ghezavati & S. Hooshyar & R. Tavakkoli-Moghaddam, 2017. "A Benders’ decomposition algorithm for optimizing distribution of perishable products considering postharvest biological behavior in agri-food supply chain: a case study of tomato," 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. 25(1), pages 29-54, March.
    6. Anna Nagurney & Min Yu & Deniz Besik, 2017. "Supply chain network capacity competition with outsourcing: a variational equilibrium framework," Journal of Global Optimization, Springer, vol. 69(1), pages 231-254, September.
    7. Anna Nagurney & Dong Li, 2014. "A Dynamic Network Oligopoly Model with Transportation Costs, Product Differentiation, and Quality Competition," Computational Economics, Springer;Society for Computational Economics, vol. 44(2), pages 201-229, August.
    8. Song, Yang & Fan, Tijun & Tang, Yuewu & Xu, Chang, 2021. "Omni-channel strategies for fresh produce with extra losses in-store," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    9. Masoumi, Amir H. & Yu, Min & Nagurney, Anna, 2012. "A supply chain generalized network oligopoly model for pharmaceuticals under brand differentiation and perishability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(4), pages 762-780.
    10. Nagurney, Anna & Yu, Min & Floden, Jonas & Nagurney, Ladimer S., 2014. "Supply chain network competition in time-sensitive markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 112-127.
    11. Anna Nagurney & Min Yu & Jonas Floden, 2013. "Supply chain network sustainability under competition and frequencies of activities from production to distribution," Computational Management Science, Springer, vol. 10(4), pages 397-422, December.
    12. Sara Fabbrizzi & Silvio Menghini & Nicola Marinelli, 2014. "The Short Food Supply Chain: A Concrete Example of Sustainability. A Literature Review," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2014(2), pages 189-206.
    13. Ma, Jun & Nault, Barrie R. & Tu, Yiliu (Paul), 2023. "Customer segmentation, pricing, and lead time decisions: A stochastic-user-equilibrium perspective," International Journal of Production Economics, Elsevier, vol. 264(C).
    14. Anna Nagurney, 2015. "Design of Sustainable Supply Chains for Sustainable Cities," Environment and Planning B, , vol. 42(1), pages 40-57, February.
    15. Li, Dong & Nagurney, Anna, 2015. "A general multitiered supply chain network model of quality competition with suppliers," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 336-356.
    16. Anna Nagurney & Dong Li, 2014. "Equilibria and dynamics of supply chain network competition with information asymmetry in quality and minimum quality standards," Computational Management Science, Springer, vol. 11(3), pages 285-315, July.
    17. Wu, Xin & Nie, Lei & Xu, Meng & Yan, Fei, 2018. "A perishable food supply chain problem considering demand uncertainty and time deadline constraints: Modeling and application to a high-speed railway catering service," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 186-209.
    18. Gaukler, Gary M. & Zuidwijk, Rob A. & Ketzenberg, Michael E., 2023. "The value of time and temperature history information for the distribution of perishables," European Journal of Operational Research, Elsevier, vol. 310(2), pages 627-639.
    19. Dilupa Nakandala & Henry Lau & Paul K.C. Shum, 2017. "A lateral transshipment model for perishable inventory management," International Journal of Production Research, Taylor & Francis Journals, vol. 55(18), pages 5341-5354, September.
    20. Agustina, Dwi & Lee, C.K.M. & Piplani, Rajesh, 2014. "Vehicle scheduling and routing at a cross docking center for food supply chains," International Journal of Production Economics, Elsevier, vol. 152(C), pages 29-41.

    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:soceps:v:60:y:2017:i:c:p:62-76. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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/seps .

    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.