Effects of constrained supply and price contracts on agricultural cooperatives |
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Authors: | Vincent Hovelaque Sabine Duvaleix-Trguer Jean Cordier |
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Institution: | aAGROCAMPUS OUEST, UMR1302 SMART, INRA, DERG, 65 rue de Saint Brieuc, CS 84215, F-35042 Rennes Cedex, France |
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Abstract: | Planning strategies depend in part on the supply flow structure of a supply chain. In food supply chains, many firms are constrained by raw material supply (e.g. vegetables and milk). This paper first examines the economic consequences of constrained supply in agricultural cooperatives. Secondly, it deals with the effects of adding price contracts to the current cooperative contract. This model combines an inventory policy approach and a Monte-Carlo simulation, to take into account price uncertainty. We illustrate our results using the case of a dairy cooperative. |
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Keywords: | Inventory Price contracts Food supply chain Agricultural cooperatives |
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