Abstract

We present an optimization model for dragon fruit plantations in Vietnam. The timing of cultivating and harvesting decisions are taken into account as the dragon fruit plant has an approximately ten-year life cycle with maximum average yield in the fourth year. Another consideration also included is the prevalence of forward-buying contracts with locked-in prices. The dragon fruit supply chain faces several difficulties as yield, price, and demand are highly sensitive to weather conditions and global uncertainty factors. The risk factors in the dragon fruit supply chain also depend on species—for example, the red varieties, while more profitable than the white varieties, also have higher export risk because they are subject to global prices and adverse geopolitical conditions.

Highlights

  • In recent years, along with the development of the supply chain management and logistics industry, the agri-food supply chain in general and the fresh fruit chain in particular have been recognized as strategic components of the national economy of many developing countries such as Vietnam.Compared to staple crops, fruit production brings greater economic benefits

  • This paper presents an optimization model for dragon fruit crop planning to support farmers make decisions on the allocation of land to crop varieties

  • A deterministic model is proposed in this paper to assist dragon fruit farmers with their decision making on crop allocation for different species of dragon fruits

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Summary

Introduction

Along with the development of the supply chain management and logistics industry, the agri-food supply chain in general and the fresh fruit chain in particular have been recognized as strategic components of the national economy of many developing countries such as Vietnam. This is a great challenge for fresh fruit supply chain (FFSC) managers over the past 40 years, given the increasing globalization and rapidly increasing demand They need a tool to support modern and accurate decision-making for long-term production. This paper presents an optimization model for dragon fruit crop planning to support farmers make decisions on the allocation of land to crop varieties. E, farmers must decide how much to sell to customers in each season according to the mToarekxeetccuotnedthiteiohnise.rarchical planning schematic, a deterministic optimization model is developed in thiTs opaepxecruftoertthheehdieraragrocnhifcraulipt plarnondiuncgtisocnheinmVatiiect,naadme.teArmlthinoiusgtihc odpratigmoinzafrtiuoint ims oudseedl iassdtehveelmopaeind tianrgthetisthpeapcuerrfeonrttshteudyr,aoguonr mfrouditepl rcoadnuccetritoaninilny Vbeieatndaampt.eAdlttohouthgehr dfrreasghofnrufritupitriosduuscetdionascthhaeinms.ain target the current study, our model can certainly be adapted to other fresh fruit production chains

Hypotheses and Assumptions
Objective Function
Case Study
Baseline Scenario
Changes to Price of Crop 2
All Crop Demands Increasing by a Fixed Percentage
Influence of the Initial Plantation Conditions
Initial Plantation with Only One Kind of Crop
The Initial Crop Allocation With Different Crop 1 Ages
Findings
Discussion
Conclusions

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