IDEAS home Printed from https://ideas.repec.org/a/taf/tprsxx/v56y2018i10p3524-3546.html
   My bibliography  Save this article

Allocation flexibility for agribusiness supply chains under market demand disruption

Author

Listed:
  • G. Behzadi
  • M.J. O’Sullivan
  • T.L. Olsen
  • A. Zhang

Abstract

This paper develops a multi-commodity multi-period optimisation model to analyse market demand disruption risk in agribusiness supply chains. It investigates the role of allocation flexibility and the effectiveness of multiple risk management strategies for achieving allocation flexibility. A robust optimisation formulation is used to obtain risk-averse solutions for an objective combining expected profit and risk. Numerical results are presented for a real-life case study of Zespri’s kiwifruit supply chain. The results show that allocation flexibility is effective for mitigating market demand disruption risk. Three proposed risk management strategies, namely diversified demand market, backup demand market and flexible rerouting, improve both expected profit and risk measures. While diversified demand market and backup demand market strategies are equally important for all decision-makers, flexible rerouting is especially significant for less risk-averse decision-makers.

Suggested Citation

  • G. Behzadi & M.J. O’Sullivan & T.L. Olsen & A. Zhang, 2018. "Allocation flexibility for agribusiness supply chains under market demand disruption," International Journal of Production Research, Taylor & Francis Journals, vol. 56(10), pages 3524-3546, May.
    • Handle: RePEc:taf:tprsxx:v:56:y:2018:i:10:p:3524-3546
    DOI: 10.1080/00207543.2017.1349955
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00207543.2017.1349955
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00207543.2017.1349955?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. Gast, Johannes & Kirkach, Evelina & Ivanov, Dmitry, 2022. "Structured literature review of transport networks and Supply Chain Resilience," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Jahn, Carlos & Blecker, Thorsten & Ringle, Christian M. (ed.), Changing Tides: The New Role of Resilience and Sustainability in Logistics and Supply Chain Management – Innovative Approaches for the Shift to a New , volume 33, pages 469-496, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    2. Limin Zhang & Fei Gu & Mingke He, 2024. "The Influence of Digital Transformation on the Reconfigurability and Performance of Supply Chains: A Study of the Electronic, Machinery, and Home Appliance Manufacturing Industries in China," Sustainability, MDPI, vol. 16(7), pages 1-22, March.
    3. Dmitry Ivanov, 2022. "Viable supply chain model: integrating agility, resilience and sustainability perspectives—lessons from and thinking beyond the COVID-19 pandemic," Annals of Operations Research, Springer, vol. 319(1), pages 1411-1431, December.
    4. Bo Yan & Xiaoxu Chen & Qin Yuan & Xiaotai Zhou, 2020. "Sustainability in fresh agricultural product supply chain based on radio frequency identification under an emergency," 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(4), pages 1343-1361, December.
    5. Soleman Imbiri & Raufdeen Rameezdeen & Nicholas Chileshe & Larissa Statsenko, 2023. "Stakeholder Perspectives on Supply Chain Risks: The Case of Indonesian Palm Oil Industry in West Papua," Sustainability, MDPI, vol. 15(12), pages 1-24, June.
    6. Behzadi, Golnar & O’Sullivan, Michael Justin & Olsen, Tava Lennon, 2020. "On metrics for supply chain resilience," European Journal of Operational Research, Elsevier, vol. 287(1), pages 145-158.
    7. Jiguang Wang & Yushang Hu & Weihua Qu & Liuxin Ma, 2022. "Research on Emergency Supply Chain Collaboration Based on Tripartite Evolutionary Game," Sustainability, MDPI, vol. 14(19), pages 1-25, September.
    8. Xu, Qingyun & He, Yi & Shao, Zhen, 2023. "Retailer's ordering decisions with consumer panic buying under unexpected events," International Journal of Production Economics, Elsevier, vol. 266(C).
    9. Soleman Imbiri & Raufdeen Rameezdeen & Nicholas Chileshe & Larissa Statsenko, 2021. "A Novel Taxonomy for Risks in Agribusiness Supply Chains: A Systematic Literature Review," Sustainability, MDPI, vol. 13(16), pages 1-24, August.
    10. Pratibha Wasan & Ashwani Kumar & Sunil Luthra, 2023. "How can banks and finance companies incorporate value chain factors in their risk management strategy? The case of agro‐food firms," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 858-877, January.
    11. Pritee Ray, 2021. "Agricultural Supply Chain Risk Management Under Price and Demand Uncertainty," International Journal of System Dynamics Applications (IJSDA), IGI Global, vol. 10(2), pages 17-32, April.

    More about this item

    Statistics

    Access and download statistics

    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:taf:tprsxx:v:56:y:2018:i:10:p:3524-3546. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TPRS20 .

    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.