An Agri-food Supply Chain Model to Empower Farmers for Supplying Deteriorated Product to Modern Retailer

Chapter
Part of the Lecture Notes in Electrical Engineering book series (LNEE, volume 186)

Abstract

Small-scale vegetables farmers have to deal with marketing and low selling price problems although they produce good quality of vegetables. The low prices are mostly because of the market information asymmetry. An agri-food supply chain (ASC) model that involves the corporate social responsibility (CSR) activities to empower the farmers as qualified supplier for modern retail (MR) is proposed to overcome the problems. The CSR activities are designed to enhance business skills and improve the quality of vegetables distribution system. For farmers, quality improvement of vegetable is expected to increase supply of vegetable to MR, whereas for MR to increase selling price and lengthen deterioration time of vegetable thus reducing the risk of unsold vegetable to consumer. Multi-objective optimization programming is developed to determine the amount supply, level of farmers training skills, quality improvement target, and the CSR total cost. The results show that both farmers and MR gain benefit from CSR activities although MR must allocate some amount of budget as CSR cost.

Keywords

Agri-food supply chain Corporate social responsibility Deterioration time Multi-objectives optimization Risk of unsold vegetable Supplier of modern retailer 

Notes

Acknowledgments

The research is supported by the Directorate General of Higher Education (DGHE), Ministry of National Education Republic of Indonesia in HIBAH BERSAING Research Program (DIPA UNS, contract No. 02338/UN27.16/PN/2012). Thanks to the Farmers Groups and the Modern Retail Corporation which have been partners in the research project.

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Copyright information

© Springer Science+Business Media Dordrecht 2013

Authors and Affiliations

  1. 1.Laboratory of Logistics and Business System, Department of Industrial Engineering, Faculty of EngineeringSebelas Maret UniversitySurakartaIndonesia

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