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Food Supplychain Managementsustainability AReview
Food Supplychain Managementsustainability AReview
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ABSTRACT
The National Food Security Bill 2013 which was passed by way of an Ordinance in the parliament is
no small feat undertaken by the Government of India. This bill promises subsidized food grains to
nearly 68% of India’s 1.2 Billion populations at a cost of nearly USD 4 Billion. The bill aims to
provide quality food grains and nutritional security, to under privileged children, women and poorer
sections of the society, at affordable prices. Indeed a very noble and ambitious plan but lots of supply
chain issues will have to be addressed on a war footing by the government.
The need to improve food quality and reduce food waste leads to increased attention for the
development of Food Supply Chain Management, which considers natural characteristics of food
supply chains besides traditional supply chain management objectives such as cost and responsiveness.
Growing consciousness of society towards sustainable development brings additional objectives to the
food supply chains and the fast evolution of sustainable development results in the development of a
new fast-growing concept: Sustainability in Food Supply Chain Management. In response to these
developments, researchers have developed various decision support tools that can be used for handling
progressively increasing complexity along the alteration process from supply chain management to
food supply chain management and now to sustainable food supply chain management. This study,
reviewed literature on food supply chain management to identify supply chain key issues and relevant
quantitative modelling challenges. The reviewed papers show that obtaining sustainability together
with considering natural characteristics of food supply chains, there is a gap between the needs of the
practice and the current available methods. This study also presented improvement opportunities for
future research by revealing the above missing points.
Keywords: Food supply chain management, Sustainability, Perishability, Quantitative models,
Qualitative models, Key performance indicators, Literature review, sustainable supply chain,
traceability, food quality, and responsiveness.
1. Introduction
Food Supply Chain management comprises organizations, which are producing and distributing
agriculture based products to consumers. There are different kind of diseases and globalisation of food
production, consumers are more conscious about the origin of their food, leading to a growing interest
in traceability, freshness and quality of what they have bought. Along with this, product assortments
are widened by producers for satisfying the consumer's broadening needs which results in more
complicated lot sizing decisions and increasing transportation costs. Moreover, current projections
show a continued increase in world population so as to population of India. Due to these developments
food supply chain management (FSCM) has become an important issue in both public and business
agendas. It requires a different management approach that considers natural characteristics of food
products and processes besides traditional SCM objectives such as cost and responsiveness. Over the
last few decades, scholars and practitioners have put more stress on FSCM than ever before. In
addition to that, recently FSCs are confronted with another trend, sustainability, which requires new
approaches in FSCM. Sustainability is meeting the needs of people who are living today without
Needs for
new/advanced
Current available models Qualitative model
methods challenges
(Figure 1)
The review studies about quantitative models in food supply chains (Ahumada and Villalobos, 2009a
and Akkerman et al., 2010), discussed production and distribution planning for agri-foods and food
distribution management for various foods supply chains. The study present detailed information with
respect to relevant models and focus on sustainability.
2.1. Logistics key issues
The current food industry has interconnected system of various complex relationships for the logistics
management of food products, because of consumers’ concerns related to food safety scandals and
globalization of food production (Trienekens and Zuurbier, 2008). Food security is still a considerable
problem because of the growing population which is projected to reach 9Bn by 2050 (Global Food
Security, 2012) that requires focus on the reduction of food waste. In food supply chains reaching the
right customer, at the right time, at the right level of quality, with the appropriate remaining shelf life
and with the right route through the chain are crucial factors for maintaining competitive advantage
(Ahumada and Villalobos, 2011). However, this claim needs to be extended when sustainability
concerns are involved in decision making. The ultimate goal in a sustainable food supply chain is to
ensure customer satisfaction with the most efficient and effective way as well as keeping in mind the
impacts of operations on the environment and society. This study consider the relevant literature to
cover the core issues in sustainable food supply chain management in three groups: (1) Reducing cost
and improving responsiveness, (2) improving food quality and reducing food waste, and (3) improving
sustainability and transparency. This sequence can be considered as phases of sustainable food supply
chain management.
2.1.1. Reducing cost and improving responsiveness
In traditional supply chain it concerns about Cost and responsiveness issues. In today’s time
consumer’s demand high quality food in various innovative forms throughout the year with a
competitive price (Trienekens and Zuurbier,2008).The aim of supply chain management to achieve
better customer service with lesser cost while satisfying the various requirements of other stakeholders
in the chain. This changing system leads to the need of advanced models and tools for planning the
supply chain operations (Mula et al., 2010) and global coordination and optimization of geographically
dispersed facilities to reduce operations costs. Today problems in food supply chains are more
sophisticated than in the past (Bilgen and Ozkarahan, 2007) and companies in the food industry focus
mainly on cost reduction.
Supply chain responsiveness, has two main dimensions; one of them is the time between placing and
receiving an order and the other one is how quickly companies respond to customer’s uniquely and
rapidly changing needs. Responsiveness is the key to maintain customer satisfaction and customer
service in the food industry. In Gunasekaran et al. (2008) the key factors for forming a responsive
supply chain were mentioned as follows: timely information sharing, shortening the total cycle time,
coordinating the workflow at different echelons of the supply chain, good decision support systems,
reducing lead times for information and materials flows, integrating information about operations,
reducing redundant echelons, and flexible capacity. Therefore on one hand increased product diversity
and competition leads to decrease in inventories to reduce inventory costs; on the other hand keeping
more inventories always guarantees responding quickly to consumers. So, food supply chains try to
Ahuja(2007) Mixed Integer Programming non linear hypothetical model type was used in
this study. Decisions on production, Transportation and Inventory issues and
provide Heuristic solution By taking demand as stochastic element for multi-
period and single mode of transportation without specifying the field of study.
Study is stochastic in nature.
Bilgen and Mixed Integer Programming linear real model type was used in this study.
Ozkaranan(2007) Study is deterministic in nature. Decisions on production, Transportation and
Inventory issues and solution method ILOG OPL Studio 3.7 CPLEX 8.0 for
multi-period and multiple mode of transportation for wheat SC. Study is
deterministic in nature.
Zanoni and Mixed Integer Programming linear hypothetical model type was used in this
Zavanella(2007) study. Decisions on production, Transportation and Inventory issues and taking
Heuristic approach for solution for multi-period and single mode of
transportation without specifying the field of study. Study is deterministic in
nature.
Azaron et al(2008) Multi Objective Programming non linear hypothetical model type was used in
this study. Decisions regarding production, Transportation and Inventory issues
and took goal attainment technique-LINGO for solution By taking demand,
supply and cost as stochastic element for single period and single mode of
transportation and did study on wine. Study is stochastic in nature.
Dabbene et al(2008) An analytical non linear real model was used with reference to beef industry in
this study. Decisions on production, Transportation and Inventory issues and
provide
A specific optimisation algorithm as solution By taking chain behaviour as
stochastic element for multi-period and single mode of transportation. Study is
stochastic in nature.
Osvald and An analytical linear hypothetical model type was used in this study. Decisions
Stirn(2008) on production and Transportation issues and took Heuristic approach as
solution for single period and multiple mode of transportation with reference to
vegetables supply chain. Study is deterministic in nature
Ahumada and Mixed Integer Programming linear hypothetical model type was used in this
Villalobos(2009b) study. Decisions on production, Transportation and Inventory issues and took
AMPL- Cplex 10 method for solution for multi-period and single mode of
transportation and taking Pepper-tomatoes as the field of study. Study is
Table 2
Performance indicators
Authors Vari Varia Finan Responsiv Marg Ener Fo GHG Temper Utilisa Qual Batc
ous nce cial eness inal gy od emiss ature tion of ity h
supp of the risk value usag wa ion control transp deca traci
ly total of e ste rates ort y ng
chai cost time carrier track
n s ing
cost
Bilgen
and
Ozkara X
han
(2007)
Zanoni
and
Zavanel X X X
la
(2007)
Azaron
et al X X X
(2008)
Dabben
e et
X X X
al(2008
)
Osvald
and
X X X
Stirn
(2008)
Ahuma
da and
Villalob X X X
os
(2009b)
Akkerm
an et al. X X X X X X
(2009)
Blackb X X X X X
4. References
[1] Ahuja, R. K. (2007),A heuristic approach to the multi-period single-sourcing problem with
production and inventory capacities and perishability constraints, Informs Journal on Computing, Vol
19 pp 14-26.
[2] Ahumada, O. and Villalobos, J. R. (2009a), Application of planning models in the agri-food
supply chain: A review, European Journal of Operational Research, Vol 196 pp 1-20.