Strategic and tactical planning model for the design of perishable product supply chain network in Ethiopia

Abstract

This article discusses the challenges associated with ensuring food security for a growing global population and emphasizes the critical role of the Agri Fresh Food Supply Chain in addressing these challenges such as mitigating food insecurity and reducing wastes. The economic repercussions of inefficiencies in perishable supply chains impact businesses' profit margins and consumers' access to essential goods. The focus is on the effective management of the complex perishable product supply chains, considering the economic significance of this sector and the need for advanced strategies to optimize the flow of time-sensitive products. The study discusses the limited consideration of product intrinsic characteristics in strategic and tactical planning decisions. The research aims to contribute to supply chain management by proposing a mathematical model (multi echelon, multi product, and multi period) for designing a perishable product supply chain network, considering factors like perishability, quantity discount policy, souring strategies and business continuity. The study explores the impact of these factors on the Agri Fresh Food Supply Chain design and its overall performances. Although the proposed model is designed to be applicable to any country or region, but its capabilities are shown through a real case study in Ethiopia. Results show that a agri-food supply chain design model that considers the intrinsic characteristics of the product, processing capacity level, and quantity discount leads to improved configurations of the food supply chain regardless of adding the associated cost.