Abstract
Production planning models are achieving more interest for being used in the primary sector of the economy. The proposed model relies on the formulation of a location model representing a set of farms susceptible of being selected by a grocery shop brand to supply local fresh products under seasonal contracts. The main aim is to minimize overall procurement costs and meet future demand. This kind of problem is rather common in fresh vegetable supply chains where producers are located in proximity either to processing plants or retailers. The proposed two-stage stochastic model determines which suppliers should be selected for production contracts to ensure high quality products and minimal time from farm-to-table. Moreover, Lagrangian relaxation and parallel computing algorithms are proposed to solve these instances efficiently in a reasonable computational time. The results obtained show computational gains from our algorithmic proposals in front of the usage of plain CPLEX solver. Furthermore, the results ensure the competitive advantages of using the proposed model by purchase managers in the fresh vegetables industry.
Highlights
Nowadays, little by little are appearing studies in which operations research are applied to solve agricultural problems for the agroindustry
The proposed model relies on the formulation of a location model representing a set of farms susceptible of being selected by a grocery shop brand to supply local fresh products under seasonal contracts
Many grocery shops prefer to add value to their products offering local fresh vegetables rather than importing the same vegetables from other countries or regions at a lower cost
Summary
Little by little are appearing studies in which operations research are applied to solve agricultural problems for the agroindustry. See Plà et al (2013) to review some opportunities and prospectives in this field. Some examples can be found for different sectors in the current literature, for example, a review of models for transport planning for the fresh fruit supply chain is presented in Soto-Silva et al (2015). A collection of a variety of models applied to the agroindustry is included in Plà-Aragonés (2015), while Ahumada and Villalobos (2009a) review several agrifood supply chain models. The fresh vegetable industry is a very important economic activity in Spain. Novel trends in Spain are related to the consumption of quality-local products. Many grocery shops prefer to add value to their products offering local fresh vegetables (fresh vegetables produced in the surroundings) rather than importing the same vegetables from other countries or regions at a lower cost.
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