Agriculture Supply Chain Management-An Operational Perspective

Abstract

Goal: An integrated model for production and distribution of agricultural produce is developed. The objective of mathematical model formulated is to maximize farm revenues by investigating the production and logistics parameters associated with the type of crop cultivated. The paper aims to develop a mathematical & conceptual framework for crop distribution that will provide an optimal farm return with the reduction in farm cost.

Methodology: Mathematical and conceptual model is developed to overcome the challenges faced by growers of perishable crops. The decision of model is made on the basis of traditional/ previous season factors such as resource availability, market price of the produce in previous year. Linear Programming as a tool is used for formulation.

Results/Findings: The complexity of model depends on the type of crop cultivated and capital invested by the growers. The developed model thus results in, planning a farm model from cultivation till harvesting. The timing which is an important parameter in the case of perishable crops were taken under formulation.  

Limitations of the Investigation: To analyze the different parameters affecting the decision variables a hypothetical farm planting tomatoes, cucumbers and bell peppers are taken under considered to determine the operational cost involved in logistics management of perishable crops. Only the perishable crops were considered to study so that the complexities and the constraints associated in packaging, storage and harvesting of these crops will be observed and analyzed. Most of these farm model often overviews the factor such as product deterioration, product life span, freshness & quality, price dynamics, transportation and inventory costs.

Practical Implications: The study supports the farmers practising perishable crops, to maximize the farm revenue and minimize the farm losses. The developed model will help the growers of perishable produce to analyze the scenario and consider the crop according to the market demands and available farm resources.

Originality / Value: None of the studies conducted so far will simultaneously focus on   minimization of product loss and maximization of farm revenues.