Quality in Competitive Fresh Produce Supply Chains with Application to Farmers’ Markets

Socio-Economic Planning Sciences (2017), 60, pp 62-76

44 Pages Posted: 13 Mar 2020

See all articles by Deniz Besik

Deniz Besik

University of Massachusetts Amherst - Isenberg School of Management - Department of Operations and Information Management

Anna Nagurney

University of Massachusetts Amherst - Isenberg School of Management - Department of Operations and Information Management

Date Written: December 1, 2017

Abstract

Fresh produce supply chains have special characteristics, notably, that the quality of the product (fruit or vegetable) deteriorates continuously over time, even under ideal conditions. In this paper, we begin with explicit formulae for fresh produce quality deterioration based on chemistry and temperature and provide a path-based framework. We then focus on farmers’ markets, the popularity of which has been growing due to consumers’ greater awareness of and interest in product quality and emphasis on health. Farmers’ markets, as examples of direct to consumer channels and shorter supply chains, are studied in the framework of game theory in both uncapacitated and capacitated versions. A case study of apples in Massachusetts, under various scenarios, including production disruptions, provides quantitative evidence of the applicability of our supply chain network approach.

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

Suggested Citation

Besik, Deniz and Nagurney, Anna, Quality in Competitive Fresh Produce Supply Chains with Application to Farmers’ Markets (December 1, 2017). Socio-Economic Planning Sciences (2017), 60, pp 62-76, Available at SSRN: https://ssrn.com/abstract=3539142

Deniz Besik (Contact Author)

University of Massachusetts Amherst - Isenberg School of Management - Department of Operations and Information Management ( email )

Amherst, MA 01003
United States
01003 (Fax)

Anna Nagurney

University of Massachusetts Amherst - Isenberg School of Management - Department of Operations and Information Management ( email )

Amherst, MA 01003-4910
United States

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