A Two-stage Optimization Model for Tactical Planning in Fresh Fruit Supply Chains: A Case Study of Kullu, India

Document Type: Research Paper

Authors

1 O. P. Jindal Global University Sonepat, Haryana, India

2 Vivaan Hospitality and Recreations, India

3 Operation’s & Supply Chain Management Area, School of Management, Doon University, Uttarakhand, India

4 Guildhall School of Business, Metropolitan London University, London, England

Abstract

In this study, a two-stage mathematical model has been developed that facilitates tactical planning of supply of apples from the various location of farmers to the marketplaces and then to the cold storage facilities. The model enables efficient network planning by finding the most suitable and cost-effective dispatching method operating in multiple stages using a mixed fleet of jeeps and trucks. The model aims to optimize the cost and demand. The paper used a multi-stage model to examine the most effective and efficient route for the supply. Kullu, Himachal Pradesh has been taken as the case location, which is famous as key apple production location in India. The lack of infrastructure in the area poses challenges for the farmers to select a mix of both trucks and jeeps to make their goods available in the market. The present paper attempts to address these issues, facilitating an effective transportation planning of apple produce.

Keywords


Arnaout, J.-P. M. and Maatouk, M. (2010). Optimization of quality and operational costs through improved scheduling of harvest operations, International Transactions in operational research. Wiley Online Library, 17(5), pp. 595–605.

Behzadi, G., O’Sullivan, M. J., Olsen, T. L. and Zhang, A. (2018). Agribusiness supply chain risk management: A review of quantitative decision models, Omega, 79, pp. 21–42. 

Biuki, M., Kazemi, A. and Alinezhad, A. (2020).An integrated location-routing-inventory model for sustainable design of a perishable products supply chain network, Journal of Cleaner Production. Elsevier, pp. 120842.

Cachon, G. P. and Zipkin, P. H. (1999). Competitive and cooperative inventory policies in a two-stage supply chain, Management science. INFORMS, 45(7), pp. 936–953.

Caicedo Solano, N. E., Llinás, G. A. and Montoya-Torres, J. R. (2020). Towards the integration of lean principles and optimization for agricultural production systems: a conceptual review proposition, Journal of the Science of Food and Agriculture. Wiley Online Library, 100(2), pp. 453–464.

Cheraghalipour, A., Paydar, M. M. and Hajiaghaei-Keshteli, M. (2019). Designing and solving a bi-level model for rice supply chain using the evolutionary algorithms, Computers and Electronics in Agriculture. Elsevier, 162, pp. 651–668.

Ertek, G. and Griffin, P. M. (2002). Supplier-and buyer-driven channels in a two-stage supply chain, IIE transactions. Springer, 34(8), pp. 691–700.

Ferrer, J.-C. Mac Cawley, A., Maturana, S., Toloza, S., and Vera, J. (2008). An optimization approach for scheduling wine grape harvest operations, International Journal of Production Economics. Elsevier, 112(2), pp. 985–999.

González-Araya, M. C., Soto-Silva, W. E. and Espejo, L. G. A. (2015). Harvest planning in apple orchards using an optimization model, in Handbook of operations research in agriculture and the agri-food industry. Springer, pp. 79–105.

Jabarzadeh, Y. Yamchi, H. R., Kumar, V., and Ghaffarinasab, N. (2020). A multi-objective mixed-integer linear model for sustainable fruit closed-loop supply chain network, Management of Environmental Quality: An International Journal. Emerald Publishing Limited, 31(5), pp 1351-73.

Jawahar, N. and Balaji, A. N. (2009). A genetic algorithm for the two-stage supply chain distribution problem associated with a fixed charge, European Journal of Operational Research. Elsevier, 194(2), pp. 496–537.

Ji, Y. Du, J., Han, X., Wu, X., Huang, R., Wang, S., and Liu, Z. (2020). A mixed integer robust programming model for two-echelon inventory routing problem of perishable products, Physica A: Statistical Mechanics and its Applications. Elsevier, p. 124481

Joshi, S. and Joshi, R. (2016). Designing and Implementing Global Supply Chain Management, IGI Global, 10.4018/978-1-4666-9720-1.

Joshi, S., and Sharma, M. (2018). Blending green with lean-incorporating best-of-the-breed practices to formulate an optimum global supply chain management framework: issues and concerns. In Operations and Service Management: Concepts, Methodologies, Tools, and Applications. IGI Global. pp. 230-249.

Joshi, S., Sharma, M., and Kler, R. (2020a). Modeling circular economy dimensions in agri-tourism clusters: Sustainable performance and future research directions. International Journal of Mathematical, Engineering and Management Sciences, 5(6), pp.1046–1061. 

Joshi, S., Sharma, M., and Rathi, S. (2017). Forecasting in service supply chain systems: A state-of-the-art review using latent semantic analysis. In Advances in Business and Management Forecasting. Emerald Publishing Limited. pp. 181-212.

Joshi, S., Singh, R. K. and Sharma, M. (2020b). Sustainable Agri-food Supply Chain Practices: Few Empirical Evidences from a Developing Economy, Global Business Review. SAGE Publications Sage India: New Delhi, India, pp. 0972150920907014.

Kamble, S. S., Gunasekaran, A., Parekh, H., and Joshi, S. (2019). Modeling the internet of things adoption barriers in food retail supply chains. Journal of Retailing and Consumer Services48, pp.154-168.

Kaminsky, P. and Simchi-Levi, D. (2003). Production and distribution lot sizing in a two stage supply chain, IIE Transactions. Taylor & Francis, 35(11), pp. 1065–1075.

Li, H., Li, D. and Jiang, D. (2020). Optimising the configuration of food supply chains, International Journal of Production Research. Taylor & Francis, pp. 1–25.

Liao, Y. Kaviyani-Charati, M., Hajiaghaei-Keshteli, M., & Diabat, A.  (2020). Designing a closed-loop supply chain network for citrus fruits crates considering environmental and economic issues, Journal of Manufacturing Systems. Elsevier, 55, pp. 199–220.

Ma, P., Wang, H. and Shang, J. (2013). Contract design for two-stage supply chain coordination: Integrating manufacturer-quality and retailer-marketing efforts, International Journal of Production Economics. Elsevier, 146(2), pp. 745–755.

Munhoz, J. R. and Morabito, R. (2014). Optimization approaches to support decision making in the production planning of a citrus company: A Brazilian case study, Computers and Electronics in Agriculture. Elsevier, 107, pp. 45–57.

Nadal-Roig, E. and Plà-Aragonés, L. M. (2015). Optimal transport planning for the supply to a fruit logistic centre, in Handbook of Operations Research in Agriculture and the Agri-Food Industry. Springer, pp. 163–177.

Nakandala, D. and Lau, H. C. W. (2019). Innovative adoption of hybrid supply chain strategies in urban local fresh food supply chain, Supply Chain Management: An International Journal. Emerald Publishing Limited, 24(22) pp.241-255

Nguyen, T.-D. Venkatadri, U., Nguyen-Quang, T., Diallo, C., and Adams, M. (2020). Optimization Model for Fresh Fruit Supply Chains: Case-Study of Dragon Fruit in Vietnam, AgriEngineering. Multidisciplinary Digital Publishing Institute, 2(1), pp. 1–26.

NHB.     (2019).     Indian  Production of Apple.           Retrieved         June     29,               2020,                from National HorticultureBoard: website:http://apeda.in/agriexchange/IndiaProduction/India_Productions.aspx?cat=fruit&hscode=1040

Paz, R. G. (2020). Agricultural holdings with undefined boundaries, communal systems and counter-hegemonies: The persistence of peasantry in Argentina, Journal of Agrarian Change. Wiley Online Library.

Pereira, D. F., Oliveira, J. F. and Carravilla, M. A. (2020). Tactical sales and operations planning: A holistic framework and a literature review of decision-making models, International Journal of Production Economics. Elsevier, p. 107695.

Prasad, M., Li, D. L., Lin, C. T., Prakash, S., Singh, J., and Joshi, S. (2015). Designing mamdani-type fuzzy reasoning for visualizing prediction problems based on collaborative fuzzy clustering. IAENG International Journal of Computer Science. 42(4), pp. 404-411

Recanati, F. Maughan, C., Pedrotti, M., Dembska, K., and Antonelli, M.  (2019). Assessing the role of CAP for more sustainable and healthier food systems in Europe: A literature review, Science of the Total Environment. Elsevier, 653, pp. 908–919.

Rajora, S., Li, D. L., Jha, C., Bharill, N., Patel, O. P., Joshi, S., and Prasad, M. (2018). A comparative study of machine learning techniques for credit card fraud detection based on time variance. In 2018 IEEE Symposium Series on Computational Intelligence (SSCI). IEEE.pp. 1958-1963.

 Sajadieh, M. S. and Jokar, M. R. A. (2009) Optimizing shipment, ordering and pricing policies in a two-stage supply chain with price-sensitive demand, Transportation Research Part E: Logistics and Transportation Review. Elsevier, 45(4), pp. 564–571.

Sharma, J., Tyagi, M. and Bhardwaj, A. (2020). Parametric review of food supply chain performance implications under different aspects, Journal of Advances in Management Research. Emerald Publishing Limited.

Shahbandeh, M. (2019). Global leading apple producing countries in 2018/2019. Retrieved June 29, 2020, from https://www.statista.com/statistics/279555/global-top-apple-producing-countries

Simchi-Levi, D. and Zhao, Y. (2003). The value of information sharing in a two-stage supply chain with production capacity constraints, Naval Research Logistics (NRL). Wiley Online Library, 50(8), pp. 888–916.

Soto-Silva, W. E., Nadal-Roig, E., González-Araya, M. C., and Pla-Aragones, L. M. (2016). Operational research models applied to the fresh fruit supply chain, European Journal of Operational Research. Elsevier, 251(2), pp. 345–355.

Varas, M., Basso, F., Maturana, S., Osorio, D., and Pezoa, R. (2020). A multi-objective approach for supporting wine grape harvest operations, Computers & Industrial Engineering. Elsevier, p. 106497.

Wani, A. A., Dhar, M. K., Ahmad, F., Najar, Z. H., Zargar, S. A., Zargar, S. M., and Dar, J. A. (2020). Genetic Diversity in Rosaceous Fruits of Jammu and Kashmir State: Apple, Apricot, and Almond, in Biodiversity of the Himalaya: Jammu and Kashmir State. Springer, pp. 227–246.

Wei, M., Guan, H., Liu, Y., Gao, B., and Zhang, C. (2020). Production, Replenishment and Inventory Policies for Perishable Products in a Two-Echelon Distribution Network, Sustainability. Multidisciplinary Digital Publishing Institute, 12(11), p. 4735.

Xu, R. and Zhai, X. (2010). Analysis of supply chain coordination under fuzzy demand in a two-stage supply chain, Applied Mathematical Modelling. Elsevier, 34(1), pp. 129–139.

Yu, Y., Xiao, T. and Feng, Z. (2020). Price and cold-chain service decisions versus integration in a fresh agri-product supply chain with competing retailers, Annals of Operations Research. Springer, 287(1), pp. 465–493.

Zegordi, S. H., Abadi, I. N. K. and Nia, M. A. B. (2010). A novel genetic algorithm for solving production and transportation scheduling in a two-stage supply chain, Computers & Industrial Engineering. Elsevier, 58(3), pp. 373–381.

Zhu, Z., Chu, F., Dolgui, A., Chu, C., Zhou, W., and Piramuthu, S.  (2018). Recent advances and opportunities in sustainable food supply chain: a model-oriented review, International Journal of Production Research. Taylor & Francis, 56(17), pp. 5700–5722.