Network Design and Optimization in the Agri-Food Supply Chain: A Juice Business Example

Year 2021, Volume: 6 Issue: 1, 49 - 70, 23.06.2021

Belkız Torğul Enes Demiralay Turan Paksoy

https://doi.org/10.26650/JTL.2021.896101

Abstract

Lack of access to agriculture-based food has become a major problem that is becoming increasingly widespread. Agri-food supply chains have attracted growing attention from consumers, companies, government agencies, and researchers in recent years due to problems with food safety and related public health issues. Sustainability, which has attracted global attention in recent years, should also be included within the optimal framework of the process of supplying agricultural food, which is among the most important needs people face in order to live healthy lives. One of the most critical factors affecting the agri-food supply chain’s sustainability is network design. Therefore, the design and operation of agri-food supply chains should be subject to stricter regulations. In this study, we conduct a literature review of operational research methods used in the design of agricultural food supply chains, and present a new, closed-loop network design application for supply chain sustainability of peach juice products. The peach juice supply chain network design model was formulated using linear programming to maximize profit and was verified using the GAMS program with the help of a numerical example. The proposed model framework highlights cost reduction activities within the recycling process, protecting the environment, and recovery the waste to the economy while addressing farmer‒supplier selection, transportation, and distribution problems.

Keywords

Network Design, Mixed Integer Linear Programming, Recycling, Agri-Food Supply Chain

Tarım-Gıda Tedarik Zincirinde Ağ Tasarımı ve Optimizasyonu: Bir Meyve Suyu İşletmesi Örneği

Abstract

Tarımsal gıdalara ulaşamamak günümüzde yaygınlaşmaya başlayan büyük bir sorun haline gelmiştir. Tarımsal gıda tedarik zincirleri, gıda güvenliği ve halk sağlığı ile ilgili sorunlar nedeniyle son yıllarda tüketiciler, firmalar, devlet kurumları ve araştırmacıların daha fazla ilgisini çekmektedir. İnsanların yaşamını sağlıklı bir şekilde devam ettirebilmesi için en önemli ihtiyacı olan tarımsal gıdaların tedarik süreci çerçevesinde son yıllarda tüm dünyanın ilgisini çeken sürdürülebilirlik konusuna da yer verilmelidir. Bir tarımsal gıda tedarik zincirinin sürdürülebilirliğini etkileyen en kritik faktörlerden biri ağ tasarımıdır. Bu yüzden, tarımsal tedarik zincirlerinin tasarımı ve işletilmesi daha sıkı düzenlemelere tabi olmalıdır. Bu çalışmada, gıda tedarik zincirlerinin tasarımı için öncelikle operasyonel araştırma yöntemlerinin bir literatür incelemesi verilmiş ardından şeftali suyu ürünlerinin tedarik zinciri sürdürülebilirliği için yeni bir kapalı döngü ağ tasarımı uygulaması sunulmuştur. Şeftali suyu tedarik zinciri ağ tasarım modeli, karma tamsayılı doğrusal programlamaya dayalı olarak kârı maksimize etmek üzere formüle edilmiş ve sayısal bir örnek yardımıyla GAMS programında çözülerek doğrulanmıştır. Önerilen model, çiftçi-tedarikçi seçimi, taşıma ve dağıtım sorunlarını ele alırken geri dönüşüm süreci ile maliyet düşürme, çevrenin korunması ve atıkların ekonomiye kazandırılması faaliyetlerini ön plana çıkarmaktadır. Modelin çözüm sonuçları, ele alınan gıda- tedarik zincirinde en fazla mali giderlerin satın alma kalemi olduğunu ortaya koymuştur. Yapılan duyarlılık analizi ile çiftçilerden yeterli arz sağlanması yoluyla daha kısa tedarik zinciri oluşturmanın işletmeye hem ekonomik hem de çevresel olarak katkı sağlayacağı sonucuna varılmıştır.

Keywords

Ağ Tasarımı, Geri Dönüşüm, Karma Tamsayılı Doğrusal Programlama, Tarım-Gıda Tedarik Zinciri

References

• Akkerman, R., Farahani, P., & Grunow, M. (2010). Quality, safety and sustainability in food distribution: A review of quantitative operations management approaches and challenges. Operations Research-Spektrum, 32, 863–904. https://doi.org/10.1007/s00291-010-0223-2
• Allaoui, H., Guo, Y., Choudhary, A., & Bloemhof, J. (2018). Sustainable agro-food supply chain design using two-stage hybrid multi-objective decision-making approach. Computers and Operations Research, 89, 369–384. https://doi.org/10.1016/j.cor.2016.10.012
• Apaiah, R. K., & Hendrix, E. M. T. (2005). Design of a supply chain network for pea-based novel protein foods. Journal of Food Engineering, 70(3), 383–391. https://doi.org/https://doi.org/10.1016/j.jfoodeng.2004.02.043
• Barsing, P., Daultani, Y., Vaidya, O. S., & Kumar, S. (2018). Cross-docking Centre Location in a Supply Chain Network: A Social Network Analysis Approach. Global Business Review, 19(3_suppl), S218–S234. https://doi.org/10.1177/0972150918757847
• Biuki, M., Kazemi, A., & Alinezhad, A. (2020). An integrated location-routing-inventory model for sustainable design of a perishable products supply chain network. Journal of Cleaner Production, 260, 120842. https://doi.org/https://doi.org/10.1016/j.jclepro.2020.120842
• Bortolini, M., Galizia, F. G., Mora, C., Botti, L., & Rosano, M. (2018). Bi-objective design of fresh food supply chain networks with reusable and disposable packaging containers. Journal of Cleaner Production, 184, 375–388. https://doi.org/10.1016/j.jclepro.2018.02.231
• Bortolini, Marco, Faccio, M., Ferrari, E., Gamberi, M., & Pilati, F. (2016). Fresh food sustainable distribution: cost, delivery time and carbon footprint three-objective optimization. Journal of Food Engineering, 174, 56–67. https://doi.org/https://doi.org/10.1016/j.jfoodeng.2015.11.014
• Cascini, A., Mora, C., Pareschi, A., & Ferrari, E. (2014). Multi-objective optimisation modelling for Green Supply Chain Management. Proceedings of the Summer School Francesco Turco, 2014-Janua, 19–24.
• Colicchia, C., Creazza, A., Dallari, F., & Melacini, M. (2016). Eco-efficient supply chain networks: Development of a design framework and application to a real case study. Production Planning and Control, 27(3), 157–168. https://doi.org/10.1080/09537287.2015.1090030
• Darestani, S. A., & Hemmati, M. (2019). Robust optimization of a bi-objective closed-loop supply chain network for perishable goods considering queue system. Computers & Industrial Engineering, 136, 277–292. https://doi.org/https://doi.org/10.1016/j.cie.2019.07.018
• Das, K. (2019). Integrating lean, green, and resilience criteria in a sustainable food supply chain planning model. International Journal of Mathematical, Engineering and Management Sciences, 4(2), 259–275. https://doi.org/10.33889/ijmems.2019.4.2-022
• Dunne, J. B., Chambers, K. J., Giombolini, K. J., & Schlegel, S. A. (2011). What does local mean in the grocery store? Multiplicity in food retailers’ perspectives on sourcing and marketing local foods. Renewable Agriculture and Food Systems, 26(1), 46–59. https://doi.org/10.1017/S1742170510000402
• Duram, L. A., & Cawley, M. (2012). Irish chefs and restaurants in the geography of “local” food value chains. Open Geography Journal, 5(1), 16–25. https://doi.org/10.2174/1874923201205010016
• Ghanbari, S., & Bashiri, M. (2019). A Resilient Agribusiness Supply Chain Network Design in a Two-Stage Stochastic Programming Framework. Proceedings of 2019 15th Iran International Industrial Engineering Conference, IIIEC 2019, 184–188. https://doi.org/10.1109/IIIEC.2019.8720637
• Gholamian, M. R., & Taghanzadeh, A. H. (2017). Integrated network design of wheat supply chain: A real case of Iran. Computers and Electronics in Agriculture, 140, 139–147. https://doi.org/https://doi.org/10.1016/j.compag.2017.05.038
• Gong, W., Li, D., Liu, X., Yue, J., & Fu, Z. (2007). Improved two-grade delayed particle swarm optimisation (TGDPSO) for inventory facility location for perishable food distribution centres in Beijing. New Zealand Journal of Agricultural Research, 50(5), 771–779. https://doi.org/10.1080/00288230709510350
• Govindan, K., Jafarian, A., Khodaverdi, R., & Devika, K. (2014). Two-echelon multiple-vehicle location–routing problem with time windows for optimization of sustainable supply chain network of perishable food. International Journal of Production Economics, 152, 9–28. https://doi.org/https://doi.org/10.1016/j.ijpe.2013.12.028
• Hasani, A., Zegordi, S. H., & Nikbakhsh, E. (2012). Robust closed-loop supply chain network design for perishable goods in agile manufacturing under uncertainty. International Journal of Production Research, 50(16), 4649–4669. https://doi.org/10.1080/00207543.2011.625051
• Jain, V., Wadhwa, S., & Deshmukh, S. G. (2009). Select supplier-related issues in modelling a dynamic supply chain: Potential, challenges and direction for future research. International Journal of Production Research. https://doi.org/10.1080/00207540701769958
• Jiang, Y., Zhao, L., & Sun, S. (2009). A resilient strategy for meat-food supply chain network design. IEEM 2009- IEEE International Conference on Industrial Engineering and Engineering Management, 1479–1483. https://doi.org/10.1109/IEEM.2009.5373072
• Jouzdani, J., & Govindan, K. (2021). On the sustainable perishable food supply chain network design: A dairy products case to achieve sustainable development goals. Journal of Cleaner Production, 278, 123060. https://doi.org/10.1016/j.jclepro.2020.123060
• Miranda-Ackerman, M. A., Azzaro-Pantel, C., & Aguilar-Lasserre, A. A. (2017). A green supply chain network design framework for the processed food industry: Application to the orange juice agrofood cluster. Computers and Industrial Engineering, 109, 369–389. https://doi.org/10.1016/j.cie.2017.04.031
• Mogale, D. G., Cheikhrouhou, N., & Tiwari, M. K. (2020). Modelling of sustainable food grain supply chain distribution system: a bi-objective approach. International Journal of Production Research, 58(18), 5521–5544. https://doi.org/10.1080/00207543.2019.1669840
• Mohammadi, Z., Barzinpour, F., & Teimoury, E. (2020). Designing sustainable supply chain network by considering direct and indirect shipment: Evidence from food industry. Decision Science Letters, 323–336. https://doi.org/10.5267/j.dsl.2020.5.003
• Mohammed, A., & Wang, Q. (2017). Developing a meat supply chain network design using a multi-objective possibilistic programming approach. British Food Journal, 119(3), 690–706. https://doi.org/10.1108/BFJ-10-2016-0475
• Mohammed, A., Wang, Q., & Filip, M. (2017c). Towards a cost-effective design of a meat supply chain: A multi-criteria optimization model. ICAC 2017 - 2017 23rd IEEE International Conference on Automation and Computing: Addressing Global Challenges through Automation and Computing. https://doi.org/10.23919/IConAC.2017.8082016
• Mohammed, A., Wang, Q., & Li, X. (2017a). A cost-effective decision-making algorithm for an RFID-enabled HMSC network design A multi-objective approach. Industrial Management and Data Systems, 117(9), 1782–1799. https://doi.org/10.1108/IMDS-02-2016-0074
• Mohammed, A., Wang, Q., & Li, X. (2017b). A study in integrity of an RFID-monitoring HMSC. International Journal of Food Properties, 20(5), 1145–1158. https://doi.org/10.1080/10942912.2016.1203933
• Nourbakhsh, S. M., Bai, Y., Maia, G. D. N., Ouyang, Y., & Rodriguez, L. (2016). Grain supply chain network design and logistics planning for reducing post-harvest loss. Biosystems Engineering, 151, 105–115. https://doi.org/https://doi.org/10.1016/j.biosystemseng.2016.08.011
• Ogier, M., Cung, V.-D., & Boissière, J. (2013). Service network design in short and local fresh food supply chain. RAIRO Recherche Operationnelle, 47(4), 445–464. https://doi.org/10.1051/ro/2013051
• Paksoy, T., Çalik, A., Kumpf, A., & Weber, G. W. (2019). A new model for lean and green closed-loop supply chain optimization. Içinde T. Paksoy, G. W. Weber, & S. Huber (Ed.), Lean and Green Supply Chain Management (C. 273, ss. 39–73). Springer International Publishing. https://doi.org/10.1007/978-3-319-97511-5_2
• Parwez, S. (2014). Food supply chain management in Indian Agriculture: Issues, opportunities and further research. African Journal of Business Management, 8, 572–581. https://doi.org/10.5897/AJBM2013.7292
• Pourmohammadi, F., Teimoury, E., & Gholamian, M. R. (2020). A scenario-based stochastic programming approach for designing and planning wheat supply chain (A case study). Decision Science Letters, 9(4), 537–546. https://doi.org/10.5267/j.dsl.2020.8.004
• Pulker, C. E., Trapp, G. S. A., Scott, J. A., & Pollard, C. M. (2018). What are the position and power of supermarkets in the Australian food system, and the implications for public health? A systematic scoping review. Obesity Reviews, 19(2), 198–218. https://doi.org/https://doi.org/10.1111/obr.12635
• Qaim, M. (2017). Conference on “Sustainable food consumption” Globalisation of agrifood systems and sustainable nutrition. Proceedings of the Nutrition Society, 76(1), 12–21. https://doi.org/10.1017/S0029665116000598
• Renting, H., Marsden, T., & Banks, J. (2003). Understanding Alternative Food Networks: Exploring the Role of Short Food Supply Chains in Rural Development. Environment and Planning A, 35, 393–411. https://doi.org/10.1068/a3510
• Rohmer, S. U. K., Gerdessen, J. C., & Claassen, G. D. H. (2019). Sustainable supply chain design in the food system with dietary considerations: A multi-objective analysis. European Journal of Operational Research, 273(3), 1149–1164. https://doi.org/10.1016/j.ejor.2018.09.006
• Soysal, M., Bloemhof-Ruwaard, J. M., & van der Vorst, J. G. A. J. (2014). Modelling food logistics networks with emission considerations: The case of an international beef supply chain. International Journal of Production Economics, 152, 57–70. https://doi.org/https://doi.org/10.1016/j.ijpe.2013.12.012
• Validi, S., Bhattacharya, A., & Byrne, P. J. (2014). A case analysis of a sustainable food supply chain distribution system—A multi-objective approach. International Journal of Production Economics, 152, 71–87. https://doi.org/https://doi.org/10.1016/j.ijpe.2014.02.003
• Zhao, X., & Lv, Q. (2011). Optimal design of agri-food chain network: An improved particle swarm optimization approach. International Conference on Management and Service Science, MASS 2011. https://doi.org/10.1109/ICMSS.2011.05998308