Conceptual System Dynamics and Agent-Based Modelling Simulation of Interorganisational Fairness in Food Value Chains: Research Agenda and Case Studies

Abstract

System dynamics and agent-based simulation modelling approaches have a potential as tools to evaluate the impact of policy related decision making in food value chains. The context is that a food value chain involves flows of multiple products, financial flows and decision making among the food value chain players. Each decision may be viewed from the level of independent actors, each with their own motivations and agenda, but responding to externalities and to the behaviours of other actors. The focus is to show how simulation modelling can be applied to problems such as fairness and power asymmetries in European food value chains by evaluating the outcome of interventions in terms of relevant operational indicators of interorganisational fairness (e.g., profit distribution, market power, bargaining power). The main concepts of system dynamics and agent-based modelling are introduced and the applicability of a hybrid of these methods to food value chains is justified. This approach is outlined as a research agenda, and it is demonstrated how cognitive maps can help in the initial conceptual model building when implemented for specific food value chains studied in the EU Horizon 2020 VALUMICS project. The French wheat to bread chain has many characteristics of food value chains in general and is applied as an example to formulate a model that can be extended to capture the functioning of European FVCs. This work is to be further progressed in a subsequent stream of research for the other food value chain case studies with different governance modes and market organisation, in particular, farmed salmon to fillet, dairy cows to milk and raw tomato to processed tomato.

Research on Coordinated Development of Chongqing Agricultural Product E-commerce Logistics Based on System Dynamics Model

“…System dynamics was proposed by Professor Fredster, Massachusetts Institute of Technology in the United States, that its use of system simulation to study various complex social, political, and business phenomena, which is a science of research information feedback system. [8] With the help of system dynamics, this article uses the coordinated development of Chongqing agricultural product e-commerce and logistics as the research object, and explains the logical relationship between system elements through qualitative and quantitative analysis. Use Vensim software to establish the number of factors in the system in the system in horizontal equations, speed equations, etc., in-depth analysis of the causal relationship between the influencing factors, and combine the relevant statistics of Chongqing 2015−2020 to conduct empirical analysis.…”

Dynamics of Food Value Chains: Resilience, Fairness and Sustainability

“…A profit margin is proposed for distributional fairness, and market power or bargaining power for procedural fairness [7]. The study presented in [9] adopts these proposed proxy indicators and demonstrates the applicability of simulation modelling approaches to explore distributive fairness, as profit margin and procedural aspects of fairness capturing power asymmetries in food value chains, via mark-up, mark down or bargaining power (number of buyers/sellers). The steps involved in developing a conceptual model and functional specifications revealed similarities in the functioning of different case studies of food value chains (dairy, wheat, tomato and salmon), in terms of supply and demand and profit-driven businesses, despite differences in governance modes, strategic coordination and structure.…”

“…The agent decisions and decision heuristics related to the management of product inventory, economic objectives and financial resource flows are common to all food value chains, allowing for the construction of a generic model. The main concepts of system dynamics and agent-based modelling are introduced, and the applicability of a hybrid of these methods is justified for a simulation modelling approach to assess the outcome of through these operational indicators of interorganisational fairness in food value chains [9]. A different hybrid simulation modelling approach for improved decision making in production planning in the Norwegian Atlantic salmon supply chain is presented in [10].…”

Development Of Means Of Engagement (Moe) Concepts For The Use Of Enterprise Resource Planning (Erp) At The Approval Level

“…The impact of the Covid-19 pandemic in the era Globalization has triggered the development of technology information that extends to many areas including are education, health, economics, trade, industry, transportation, services and food [1] [2]. Business world/actors large scale companies, medium scale companies, scale companies small, up to the level of micro, small and business actors Medium Enterprises (MSMEs), need to innovate and implement strategic steps to maintain business continuity [3] [4]. In the era of globalization steps strategies chosen and carried out by the world businesses/Companies and business people are with taking advantage of advances in information technology, one of them by implementing an Enterprise Resource Planning system (ERP) [5] [6].…”