Optimizing Citrus Production by Considering Food Waste

56 Pages Posted: 16 Jan 2024

See all articles by Christian Müller

Christian Müller

University of Duisburg-Essen - Mercator School of Management

Jochen Gönsch

University of Duisburg-Essen - Mercator School of Management

Louisa Albrecht

affiliation not provided to SSRN

Max Staskiewicz

affiliation not provided to SSRN

Abstract

In many countries the citrus industry is an important economic factor. The orange fruit industry's supply chain is complex system, where many nodes interact with each other. Unlike many supply chains, which are "demand-driven" systems, the orange industry's supply chain is typically a "production-driven" system. Oranges are either sold directly to the market or to juice producers, which process oranges into juice. The resulting residue is either disposed of as waste or used to produce by-products that reduce waste and contribute to overall profits.    In view of the changing climate  and the resulting weather conditions a planting plan considering different types of orange trees is useful. For each orange variety, the planning process also includes decisions on the number of oranges that will be sold directly to final consumers, transported to juice producers, or stored and the by-prodcuts produced. The paper shows the potential of a stochastic, integrated strategic planning model that considers the different timeframes of different decisions. The proposed scenario-based linear programming model was developed to determine the amount of planted tress for each tree type, the production quantities of the different end products of the system (oranges, juice, and by-products) given the resources (fresh oranges, storage capacity) required to maximize the total net profit of the company/system. The results of the scenario-based model are compared to the results of a wort-case and an on-average-model. In comparison, the scenario-based model always delivers the best results.

Keywords: Planting orange trees, Desicision Support, Scenario-based

Suggested Citation

Müller, Christian and Gönsch, Jochen and Albrecht, Louisa and Staskiewicz, Max, Optimizing Citrus Production by Considering Food Waste. Available at SSRN: https://ssrn.com/abstract=4696988 or http://dx.doi.org/10.2139/ssrn.4696988

Christian Müller (Contact Author)

University of Duisburg-Essen - Mercator School of Management ( email )

Lotharstraße 65
Duisburg, Nordrhein-Westfalen 47057
Germany

Jochen Gönsch

University of Duisburg-Essen - Mercator School of Management ( email )

Lotharstraße 65
Duisburg, Nordrhein-Westfalen 47057
Germany
+49 203 379 - 2777 (Phone)
+49 203 379 - 1760 (Fax)

HOME PAGE: http://udue.de/goensch

Louisa Albrecht

affiliation not provided to SSRN ( email )

No Address Available

Max Staskiewicz

affiliation not provided to SSRN ( email )

No Address Available

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