Designing a Fresh Food Supply Chain Network: An Application of Nonlinear Programming

In today’s business environment, many fresh food companies have complex supply networks to distribute their products. For example, agricultural products are distributed through a multiechelon supply chain which includes agricultural association, agricultural produce marketing corporations (APMCs), m...

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Main Author: Yu-Chung Tsao
Format: Article
Language:English
Published: Wiley 2013-01-01
Series:Journal of Applied Mathematics
Online Access:http://dx.doi.org/10.1155/2013/506531
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author Yu-Chung Tsao
author_facet Yu-Chung Tsao
author_sort Yu-Chung Tsao
collection DOAJ
description In today’s business environment, many fresh food companies have complex supply networks to distribute their products. For example, agricultural products are distributed through a multiechelon supply chain which includes agricultural association, agricultural produce marketing corporations (APMCs), markets, and so forth. In this paper a fresh produce supply network model is designed to determine the optimal service area for APMCs, the replenishment cycle time of APMCs, and the freshness-keeping effort, while maximizing the total profit. The objective is to address the integrated facility location, inventory allocation, and freshness-keeping effort problems. This paper develops an algorithm to solve the nonlinear problem, provides numerical analysis to illustrate the proposed solution procedure, and discusses the effects of various system parameters on the decisions and total profits. A real case of an agricultural product supply chain in Taiwan is used to verify the model. Results of this study can serve as a reference for business managers and administrators.
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spelling doaj-art-dc846b1393094934b63696d68f1866812025-02-03T01:00:58ZengWileyJournal of Applied Mathematics1110-757X1687-00422013-01-01201310.1155/2013/506531506531Designing a Fresh Food Supply Chain Network: An Application of Nonlinear ProgrammingYu-Chung Tsao0Department of Industrial Management, National Taiwan University of Science and Technology, No. 43 Section 4, Keelung Road, Da’an District, Taipei 106, TaiwanIn today’s business environment, many fresh food companies have complex supply networks to distribute their products. For example, agricultural products are distributed through a multiechelon supply chain which includes agricultural association, agricultural produce marketing corporations (APMCs), markets, and so forth. In this paper a fresh produce supply network model is designed to determine the optimal service area for APMCs, the replenishment cycle time of APMCs, and the freshness-keeping effort, while maximizing the total profit. The objective is to address the integrated facility location, inventory allocation, and freshness-keeping effort problems. This paper develops an algorithm to solve the nonlinear problem, provides numerical analysis to illustrate the proposed solution procedure, and discusses the effects of various system parameters on the decisions and total profits. A real case of an agricultural product supply chain in Taiwan is used to verify the model. Results of this study can serve as a reference for business managers and administrators.http://dx.doi.org/10.1155/2013/506531
spellingShingle Yu-Chung Tsao
Designing a Fresh Food Supply Chain Network: An Application of Nonlinear Programming
Journal of Applied Mathematics
title Designing a Fresh Food Supply Chain Network: An Application of Nonlinear Programming
title_full Designing a Fresh Food Supply Chain Network: An Application of Nonlinear Programming
title_fullStr Designing a Fresh Food Supply Chain Network: An Application of Nonlinear Programming
title_full_unstemmed Designing a Fresh Food Supply Chain Network: An Application of Nonlinear Programming
title_short Designing a Fresh Food Supply Chain Network: An Application of Nonlinear Programming
title_sort designing a fresh food supply chain network an application of nonlinear programming
url http://dx.doi.org/10.1155/2013/506531
work_keys_str_mv AT yuchungtsao designingafreshfoodsupplychainnetworkanapplicationofnonlinearprogramming