Competitive Food Supply Chain Networks with Application to Fresh Produce

Abstract

In this paper, we develop a network-based food supply chain model under oligopolistic competition and perishability, with a focus on fresh produce. The model incorporates food deterioration through the introduction of arc multipliers, with the inclusion of the discarding costs associated with the disposal of the spoiled food products. We allow for product differentiation due to product freshness and food safety concerns, as well as the evaluation of alternative technologies associated with various supply chain activities. We then propose an algorithm with elegant features for computation. A case study focused on the cantaloupe market is investigated within this modeling and computational framework, in which we analyze different scenarios prior/during/after a foodborne disease outbreak.

Keywords: food supply chains, fresh produce, oligopolistic competition, food deterioration, product differentiation