Restructuring the Indian agro-fresh food supply chain network: a mathematical model formulation
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ORIGINAL PAPER
Restructuring the Indian agro‑fresh food supply chain network: a mathematical model formulation Rakesh Patidar1 · Sunil Agrawal1 Received: 16 January 2020 / Accepted: 26 September 2020 © Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract In traditional Indian agro-fresh food supply chain (AFSC), authors identify the following four shortcomings through the literature survey: (1) unorganized supply chain structure; (2) low profitability of farmers; (3) high wastage of agricultural products; and (4) a large number of small-farm-holding farmers. According to the fourth shortcoming, 85% of farmers have less than 2 hectares of farming land, and these farmers transport their products independently into the market to sell. Owing to this, a higher transportation cost is incurred in traditional AFSC, which leads to low profit for farmers. To overcome these shortcomings, authors propose aggregation of products by forming clusters of farmers and its transportation from these cluster centers to market. This paper formulates multi-period, multi-product, mixed-integer nonlinear programming model to design a four-echelon supply chain with considering the clustering of farmers and perishability of products. A real case study problem of Mandsaur District (India) of vegetable distribution is solved in LINGO 17.0 to check the validity of the formulated model. The results revealed that 85% of the total distribution cost incurred in the transportation of products from farmers to the market. Hence, the major focus should be to design an efficient transportation plan for the minimization of transportation cost from farmers to the market. Further, sensitivity analysis shows that the proposed model is robust and sensitive to changes in maximum distance traveled by a farmer to reach a cluster center and number of hubs to be opened, respectively. Graphic abstract
Keywords Agro-fresh food supply chain (AFSC) · Supply chain network (SCN) · Perishability · Aggregate product transportation · Mixed-integer nonlinear programming (MINLP)
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List of symbols Indices f Index of farmers (suppliers), f ∈ {1, .., F} i Index of FCCs, i ∈ {1, .., I} ∈ F j Index of hubs, j ∈ {1, .., J} k Index of CZs (retailers), k ∈ {1, .., K} p Index of product types, p ∈ {1, .., P} t, τ Index of periods, t ∈ {1, .., T} Parameters t The harvested quantity of product type p available Hfp to supply from fth farmer (kg) lp The shelf life of product type p (period) Dtkp The quantity demanded at kth CZ for product type p (kg) D1fi Distance from farmer fth to ith FCC (km) D1m Maximum distance to be traveled by a farmer to belong to any FCC (km) D2ij Distance from ith FCC to jth hub (km) D3jk Distance from jth hub to kth CZ (km) TC1 Unit transportation cost from a farmer to an FCC [INR (The current value of 1 INR is equal to 0.014 USD as on September 10, 2020)/km/kg] TC2 Unit transportation cost from an FCC to a hub(INR/km/kg) TC3 U
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