A mathematical model formulation to design a traditional Indian agri-fresh food supply chain: a case study problem

Abstract

PurposeThe purpose of this paper is to study and develop supply chain structure of traditional Indian agri-fresh food supply chain (AFSC). This paper proposes a mathematical model to design a traditional Indian AFSC to minimize total distribution cost and post-harvest losses in the chain.Design/methodology/approachThis paper formulates two mathematical models to structure and represent the flow of products in the existing chain. First, a three-echelon, multi-period, multi-product, mixed-integer linear programming (MILP) model is formulated to minimize the total distribution cost incurred in the chain. Further, the developed formulation is extended by considering the perishability of products in the second model.FindingsA real case study problem of Mandsaur district (India) is solved in LINGO 17.0 package to check the validity of the formulated models. The perishable (second) model of AFSC reports better results in terms of costs and post-harvest losses minimization. The results revealed that 92% of the total distribution cost incurred in the transportation of products from farmers to the hubs.Research limitations/implicationsThis paper includes implications for redesigning an existing supply chain network by incorporating an appropriate transportation strategy from farmers to hubs to minimize transportation inefficiency and enhance the profitability of farmers.Practical implicationsThe formulated AFSC model would help managers and policymakers to identify optimal locations for hubs where required infrastructure would be developed.Originality/valueAccording to the author's best knowledge, this paper is the first to design traditional Indian AFSC by considering the perishability of products.