Mitigating impact of risks on economic integration between entities in agrifood supply chain

Abstract

The paper aims to assess and reduce the risks associated with infrastructure, financial, natural and environmental, farm management, and political changes among smallholders in tomato supply chain entities. Uncertainties related to the producer, buyer, infrastructure, finance, natural and environmental, management, and political changes in STSC take into account risk levels' assessment. These threats were assessed using Fuzzy Linguistic Quantifier Order Weighted Aggregation (FLQOWA) model. The obtained results showed the level of risk arising in production, cooperation, infrastructure, and financial issues. At the same time, measures to reduce risk levels were taken in the study. According to the results, applying "written contract" and "insurance" to collaborative relationships to reduce risk levels has been shown to reduce risks to 0.6 coefficients. The results obtained from this investigation will have a positive effect if policymakers use the applications to increase the economic cooperation between the subjects in STSC.

Prospects, Challenges and Sustainability of the Agri-Food Supply Chain in the New Global Economy II

“…Fornes et al studied the management of quality, supplier selection, and cold-storage contracts in AFSC and found that based on different scenarios, the value of the stochastic solutions shows that modeling and solving the proposed stochastic model minimizes costs by an average of around 6.4%, and the expected value of perfect information demonstrates that using a proactive strategy could cost up to 9% [14]. Pardaev et al assessed the impact of risk on economic integration between entities in AFSC and found that applying "written contract" and "insurance" to collaborative relationships to reduce risk levels has been shown to reduce risks to coefficients of 0.6 [15]. Esteso et al proposed a tool based on a system dynamics model to determine the robustness of an already designed five-stage fresh AFSC and its planting planning to disruption in demand, supply, transport, and the operability of its nodes [16].…”