Ho Thanh Phong et al | 137 A holistic approach for the design and management of an agri-fresh produce supply chain: A literature review HO THANH PHONG International University, Vietnam National University HCMC – htphong@hcmiu.edu.vn CHANDANA HEWEGE Swinburne University of Technology – chewege@swin.edu.au PHAN THUY KIEU International University, Vietnam National University HCMC – phanthuykieu2006@gmail.com Abstract The paper is a systematic review of the existing literature on the operational research models applied by previous researchers in the context of an agri-fresh produce supply chain The paper aims to generate a deeper understanding of the trends and mathematical modelling methods used in previous research by employing a structured taxonomy of literature classification A chain of intermediaries tends to play a critical role in delivering agri-fresh commodities from farmers to consumers These intermediaries perform various functions including the collection, preservation and delivery of agri-fresh produce, creating linkages among all stakeholders of the supply chain Essentially, the study summarizes most of the technical, organizational and functional solutions that have been used to design optimal fresh produce supply chain management approaches Findings of the paper generated by applying a systematic literature review protocol have significant practical implications and stress the crucial of holistic approaches for the design and management of Agri-fresh produce supply chains with a view to overcoming current challenges in production, distribution and inventory management Keywords: supply chain; operational research; design; agri-fresh produce; modelling; performance measurement 138 | ICJED2017 Introduction A supply chain encompasses all activities associated with the flow and transformation of goods from the raw material stage to end users, as well as the associated information flows As part of operations, the supply chain management (SCM) also plays an important role in maintaining the flow of materials from processing units to the production of finished goods, and then to end consumers (Chopra and Meinnd, 2001; 2007) While producing perishable goods is vital to satisfying the growing global demand for food, the supply chain management of agrifresh produce is equally crucial to delivering goods to the market at the right time and with minimum loss of food quantities and qualities, i.e perishability may occur in one or more stages across the chain (Amorim et al., 2013; Boselie et al., 2003; Nahmias, 1982) from the extremely short processing to transportation times (Gigler et al., 2002; Van Der Vorst et al., 1998) Other characteristics, such as seasonality of Agriculture production (Salin, 1998; Tsubone et al., 1983), long supply lead times (Aramyan et al., 2006; Lowe and Preckel, 2004) and uncertainty in harvest time due to unpredictable weather conditions (Dorfman and Havenner, 1991; Salin, 1998), also make the Agri-supply chain management even more complex As a result, the operational research of Agri-fresh produce supply chain (APSC) has attracted considerable interest of researchers as a mechanism to generate management efficiency through the use of modern decision technology tools It is evident that the major trends related to the principles of operational research models have spread across the scientific literature Over the last 20 years, many lead authors across the world have dramatically concentrated on designing and managing agri-fresh produce supply chains (Greenberg, 1995; Carter, 2011; Pokharel and Mutha, 2009; Seuring and Muller, 2008; Srivastava, 2007) However, it is found that there is a significant level of inconsistency and confusion in segmenting fruits, flowers, and vegetables Thus, there is an acute need for the categorization of the produce to enhance the scalability of the developed models As such, this paper will adopt the definition of Shukla and Jharkharia (2013) on agri-fresh produce (Figure 1) Ho Thanh Phong et al | 139 Figure 1: Product differentiation (Shukla and Jharkharia, 2013) In fact, this paper reviews the key literature on the operational research models that are applied in the fresh produce supply chains and thereby aims to generate deeper understanding of the trends through the structured taxonomy of literature classification Concurrently, the authors synthesize the progression of the previously published papers related to the design and management of agri-fresh produce supply chains with a view to providing directions for further studies The remainder of this paper is structured as follows The next section presents the review methodology we employed in this study This is followed by a detailed description of fresh produce supply chain background In section 4, we synthesize supply chain models that have been developed for agri-fresh produce Then, we discuss the findings towards designing and managing the fresh produce supply chain in Vietnam in section Finally, section concludes this review paper Review methodology “A literature review is a systematic, explicit, and reproducible design for identifying, evaluating, and interpreting the existing body of recorded documents” (Fink, 1998) Thus, the objective of the literature review is to: (1) summarize existing research by determining patterns and issues and (2) identify the conceptual content of the field (Meredith, 1993) 140 | ICJED2017 To synthesize the existing body of knowledge pertinent to the design and management of the supply chain of fruits and vegetables, the authors review various published research articles using a combined approach of deductive and inductive reasoning First of all, the authors focus on some key words by using Google Scholar, including “design and management of agrifresh produce supply chain”, “Operational models applied for fruit and vegetable supply chain”, “harvesting”, “scheduling”, “Mathematical programming models”, “Multi-objective programming”, “supply chain linear programming models”, “supply chain design”, and so on The search for these key words results in many relevant articles and then the articles are screened by applying criteria of Thomson Reuters, SCOPUS, Elsevier, Wiley or Emerald and in Web of Science to avoid reference biases and select journals that are closely related to the key words Finally, the authors check each paper We follow three common rules: (1) papers written in English language; (2) papers consisting of decision variables modelling the production planning or logistic of fruit and vegetable supply chains, intended for fresh consumption and for production; (3) and even papers of other agri-fresh produce are selected after satisfying the rules & Our review results in selecting papers based on their abstracts and highlights, covering 20 review articles and 62 papers in particular Agri-fresh produce supply chains background Lowe and Prackel (2004) reviewed the literature on applications of decision technology tools for a selected set of agribusiness problems in crop planning calling for more research into solving these problems When engaging in a pioneering review of planning models relating to the production and distribution of the agri-food supply chains, Ahumada and Villalobos (2009) pointed out: (1) agri-fresh produce supply chain are more complex and harder to manage than other supply chains, (2) relating to preserving freshness and product quality, it requires more limited delivery deadlines, more controlled storage conditions, better quality of end-products and minimum losses due to deterioration (Dabbene et al., 2008; Verdouw et al., 2010) Audsley and Sandars (2009) revise Operations Research models in agriculture but they limit the review to British developments However, these authors only synthesized holistic systems modelling of the agricultural sector in the past and gave some arguments to explain observed shortcomings Ho Thanh Phong et al | 141 What is more, Akkerman et al (2010) reviewed the quantitative operations management approaches to food distribution management, mainly focusing on three aspects: food quality, food safety, and sustainability Proposing a taxonomy framework based on the following elements: supply chain structure, decision level, modelling approach, purpose, shared information, limitations, novelty and application, Mula et al (2010) review mathematical programming models for supply chain production and transport planning More recently, Zhang and Wilhelm (2011) provided growers and distribution managers’ insights into the variety of decision support possible and benchmarks for improvements in the specialty crops industry, including vegetables, fruits, grapes and wine, ornamentals, tree nuts, berries and dried fruits Meanwhile, Lehmann et al (2012) presented three cases covering agriculture, logistics and food awareness to overview on technology, information content, information organization, and communication and assure the successful utilization of the potential of the future Internet Next, Shukla and Jharkharia (2013) conducted a detailed literature review covering all the operational issues related to the fresh produce supply chain management (fruits, flowers and vegetables) They also paid attention to the consumer satisfaction and revenue maximization with post‐harvest waste reduction as a secondary objective With the product‐problem‐ methodology mapping may serve as a framework for the managers addressing issues in FSCM Furthermore, Tsolakis et al (2014) considered Agri-food Supply Chain management as a rapidly evolving research field and offered an integrated hierarchical decision-making framework Concurrently, the critical issues for the design and planning of Agri-food Supply Chain management are defined and discussed to identify gaps and overlaps in the Agri-food Supply Chain literature In addition, Kusumastuti et al (2016) reviewed harvesting and processing in agricultural supply chains based on the findings from a systematic review of 76 papers Soto-Silva et al (2016) reviewed Operations Research (OR) methods in fresh fruit supply chains and come up with future perspective of OR developments in this field of application Moreover, Borodin et al (2016) provided a state of the art OR use in agriculture under uncertainty while Paam et al (2016) looked in to optimization of agri-fresh food supply chains, with a focus on loss minimization in the fruits and vegetables supply chains Lastly, in terms of food waste, Raak et al (2017) pointed out causes of processing and product-related food waste, especially new insights from expert 142 | ICJED2017 interviews, whereas Balaji and Arshinder (2016) identified 16 causes of food wastage in the Indian fruits and vegetables supply chain In regards to supply chain network design, Beamon (1998) reviewed the literature in the area of multi-stage supply chain design and analysis with a view to developing a research agenda that may serve as a basis for future supply chain research Shen (2007) reviewed recent developments in the area of integrated supply chain design, in which the decision maker needs to take into consideration inventory costs and distribution costs when the number and locations of the facilities are determined Farahani et al (2014) covered the field of supply chain network design (SCND), particularly in competitive environments, throughout 200 references which categorized different SCND problems and the potential gaps as the future research areas Besides, it proposes a general framework for modelling the competitive SCND problems Eskandarpour et al (2015) reviewed 87 papers to address at least two dimensions of sustainable development and give a special focus on Life-Cycle Assessment (LCA) based models The articles included in Table (Appendix) are obtained from the journals listed in Table One group of three journals represents 45% of all, including European Journal of Operational Research, International Journal of Production Economics, and Omega which account for 20%, 15%, 10% respectively Eleven journals consist of the rest representing highly statistical-focused papers Ho Thanh Phong et al | 143 Review of Fresh produce supply chain models 4.1 The structured taxonomy This paper follows the proposed classification of the literature used in Ahumada and Villalobos (2009); Mula et al (2010); SotoSilva et al (2016) Figure 2: Proposed taxonomy criteria 4.2 Decision levels This review is based on the published paper of Ahumada and Villalobos (2009b) related to three levels of the decision strategy directly: (1) The strategic level deals with decisions regarding product design, what to make internally and what to outsource, supplier selection, and strategic partnering as well as well as decisions on the number, location, and capacity of warehouses and manufacturing plants and the flows of material through the logistics network; (2) The tactical level includes decisions of harvest planning, scheduling of crops, selection of labour, capacity, etc; (3) The operational level refers to production scheduling activities on an hour-to-hour basis, lead time quotations, storage, routing, and truck loading (Simchi et al., 2008) In fact, 144 | ICJED2017 this classification is always unclear when dealing with mixture of activities between strategic and tactical decisions or between tactical and operational levels (Shukla and Jharkharia, 2013; Farahani et al., 2014) Table (Appendix) depicts decision levels of 62 reviewed papers Out of these, Twenty-six articles relates to strategic issues, thirty-eight deals with tactical levels and twenty at the operational decisions Whereas fourty papers have some reference to one specific decision level, twenty-four papers simultaneously consider aspects related to two issues in the form of strategic-tactical or tactical-operational stages However, there are several papers amongst of 26 papers at the strategy level, which mention designing and managing supply chains while most of them consider the optimal models on business aspects To illustrate our synthesis, we adopt Broekmeulen (1998) approach toward formulating a tactical decision model for managing the operations of a distribution center Four key decisions specify the amount of storage space needed in each zone within a storage facility, the storage conditions in each zone, the assignment of each product to a zone for storage, and the storage policy 4.3 Modeling approach Modeling approach is driven by the nature of the inputs and the objective of the study A variety of mathematical approaches are used to model and solve decision problems related to the reviewed fruit and vegetable supply chain Ho Thanh Phong et al | 145 Besides, an array of decision support models is also mentioned in this paper with the goal of providing perspectives to models like LCA, sampling method, Stackelberg game, Fuzzy Logic, reference model, Triple Helix Model, and so forth Table (Appendix) shows that a wide variety of methodologies are applied To illustrate this further, these methodologies include the linear programing-based modelling approach (14 papers), multiobjective linear programming (6 papers), nonlinear programming (2 papers), simulation models (2 papers), dynamic programming (3 papers), and HEU and HYB (4 papers) The reviewed articles in the current study also present the inclusion of two different methods, achieved by MILP and HEU (5 papers), SM and DP, ILP and stochastic programming, NIP and HEU, HEU and SM, LCA and s-LCA, information discovery and a well-structured contract allocation methodology, innovative strategies and an Expert System (ES) using Fuzzy Logic, an algebraic modelling language and an optimization software of mathematical programming, the optimal solution of the pricing and lot-sizing problem Likewise, the main approaches appear to be Fuzzy multi-objective programming model, Life Cycle Assessment Analysis, Sampling method, Stackelberg game, a novel multi-objective hybrid approach called MHPV, Optimal policies; Cross-docking centre, the Triple Helix Model, Target Minimization of Total Absolute Deviation (MOTAD) model, a planning methodology, a two-stage stochastic program, Logistics service performance, a reference model To be more precise, Soto-Silva et al (2017) are the first authors to use Optimization models and a bi-objective method in their paper 4.4 Published papers The distribution of 62 revised papers has been depicted in the table below 146 | ICJED2017 The Figure describes the distribution of journals having 62 selected papers It is noted that five journals account for 56.45% of the total publications, including International Journal of Production Economics (20.97%), European Journal of Operational Research (9.68%), Computers and Electronics in Agriculture (8.06%), Agricultural Systems (8.06%), Journal of Food Engineering (4.84%), and Journal of the Operational Research Society (4.84%) 4.4.1 Novelty seeking The novelty associated with each of the reviewed papers is presented briefly in Table below Table Performance Indicators adapted from Aramyan et al., 2006 Performance measurement Efficiency (E) Cost - Production cost - Distribution cost - Transaction cost Profit Return on investment Inventory - Warehousing - Capital - Storage - Insurance Table 10 Measured performance of the reviewed papers Author Soto-Silva et al (2017) Banasik et al (2017) Garofalo et al (2017) Mohammed and Wang (2017) Keizer et al (2017) Catalá et al (2016) Tecco et al (2016) Lamsal et al (2016) 174 | ICJED2017 Author Mirmajlesi and Shafaei (2016) Suryaningrat et al (2015) Etemadnia et al (2015) Mason and Villalobos (2015) Zhang et al (2015) Govindan et al (2014) Cai and Zhou (2014) Lambert et al (2014) Munhoz and Morabito (2014) Agustina et al (2014) Qin et al (2014) Soysal et al (2014) Velychko (2014) Manzini and Accorsi (2013) Author Tsao (2013) Ampatzidis et al (2013) Teimoury et al ( 2013) Duan and Liao (2013) Catalá et al (2013) Perdana and Kusnandar (2012) Haddad and Shahwan (2012) Amorim et al (2012) Yu et al (2012) Tan and Çưmden (2012) Banaeian et al (2012) 176 | ICJED2017 Author Ahumada et al (2012) Ahumada and Villalobos (2011a) Rong et al (2011) Ahumada and Villalobos (2011b) van der Merwe et al (2011) Bohle et al (2010) Hsiao et al (2010) Verdouw et al (2010) Arnaout and Maatouk (2010) Van Der Vorst et al (2009) Blackburn and Scudder Author (2009) Dabbene et al (2008) Bai et al (2008) Cittadini et al (2008) Cholette (2007) Ferrer et al (2007) Ortmann et al (2006) Caixeta-Filho (2006) Blanco et al (2005) Leven and Segerstedt (2004) Vitoriano et al (2003) Hester and Cacho (2003) Gigler et al (2002) 178 | ICJED2017 Author Caixeta-Filho et al (2002) Munhoz and Morabito (2001) Broekmeulen (1998) Maia et al (1997) Starbird (1988) Willis and Hanlon (1976) References Agustina D., C.K.M Lee, Rajesh Piplani, 2014 Vehicle scheduling and routing at a cross docking center for food supply chains 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