Supply chain models for small agricultural enterprises |
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Authors: | Wooseung Jang and Cerry M Klein |
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Institution: | (1) Intelligent Manufacturing Systems Centre, University of Windsor, Windsor, ON, N9B 3P4, Canada;(2) Senior Systems Engineer, Systems Analysis, General Motors Corp., P.O. Box 483-710-205, 895 Joslyn Ave., Pontiac, MI 48340-2925, USA |
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Abstract: | Small agricultural production enterprises have been under immense economic pressures for many years. It is our belief that
a favorable impact can be made on small farm enterprises through the development and implementation of models that address
their basic needs and open new markets and production initiatives. In this paper, we develop models for supply chain issues
facing small farmers, solve them, and suggest their uses and future considerations. In particular, we consider B2C and B2B
aspects of an agricultural supply chain model. The B2C aspect is considered in direct farmer to consumer sales in retail markets,
while the B2B aspect is represented by transactions through agricultural cooperatives. We evaluate key strategic decisions
such as whether to form cooperative agreements with other farmers and if so, how large to make the cooperative, and the production
quantities at which farmers would like to sell directly to customers with or without using the cooperative. |
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