Optimization Model for Fresh Fruit Supply Chains: Case-Study of Dragon Fruit in Vietnam

Abstract

We present an optimization model for dragon fruit plantations in Vietnam. The timing of cultivating and harvesting decisions are taken into account as the dragon fruit plant has an approximately ten-year life cycle with maximum average yield in the fourth year. Another consideration also included is the prevalence of forward-buying contracts with locked-in prices. The dragon fruit supply chain faces several difficulties as yield, price, and demand are highly sensitive to weather conditions and global uncertainty factors. The risk factors in the dragon fruit supply chain also depend on species-for example, the red varieties, while more profitable than the white varieties, also have higher export risk because they are subject to global prices and adverse geopolitical conditions.

Food Processing Waste in Vietnam: Utilization and Prospects in Food Industry for Sustainability Development

“…Dragon fruit is classified as a key export fruit product, bringing in billions of dollars in income value to farmers every year. In 2019, the growing land of dragon fruit was approximately 36.5 thousand hectares and produce around 630 tons of total yield, which led Vietnam to the world's exporter of dragon fruit (Nguyen et al, 2020).The main export markets of Vietnamese dragon fruit are China (accounting for more than 80%), Thailand, and Indonesia. Besides, Vietnamese dragon fruit has also been exported to many other countries such as India, Australia, New Zealand, Japan, the European Union, and Chile.…”

Unfolding the potential of dragon fruit (Hylocereus spp.) for value addition: A review

“…A significant effort is to be made upon preparation and popularization of high quality value‐added products such as juice, jam, jelly, powder, wine, and so forth. from DF as its very difficult to preserve the fresh fruits for longer duration (Jalgaonkar et al, 2022; Nguyen et al, 2019). The uncertainty of demand, production and price are added challenges over lack of farming knowledge and poor trade practice throughout the value chain, from growers to collectors/traders, wholesalers, retailers, and supermarkets (Nguyen et al, 2019).…”

Optimization model to support sustainable crop planning for reducing unfairness among farmers

“…However, to balance supply and demand it is necessary to take into account more operative decisions. However, few papers as well as this paper take into account additional more operative decisions such as the harvest, transport and sale of crops in order to anticipate the balance between supply and demand at markets (Ahumada et al, 2012;Villalobos, 2011a, 2011b;Flores et al, 2019;Flores and Villalobos, 2018;Mason and Villalobos, 2015;Najafabadi et al, 2019;Nguyen et al, 2019). In the particular case of transport decisions, analysed models do not take into account neither the capacity of vehicles nor the minimum cargo to be filled in order to use a vehicle, which determines the quantity of vehicles necessary to transport crops and limits the quantity of crops to be transported ready to satisfy demand.…”

“…Most models for crop planning considering the demand of crops such as the proposed by Cid-Garcia and Ibarra-Rojas (2019) and Ren et al (2019) assume that all demand should be met, allowing, and not penalizing the overproduction of crops and assume that all production is sold. However, few papers model what happens when an imbalance between supply and demand occurs, such as the generation of waste in cases of overproduction (Hasuike et al, 2018;Mason and Villalobos, 2015) or unmet demand in cases of underproduction (Albornoz et al, 2020;Darby-Dowman et al, 2000;dos Santos et al, 2010;Flores and Villalobos, 2018;Forrester et al, 2018;Hasuike et al, 2018;Mason and Villalobos, 2015;Nguyen et al, 2019;Villa et al, 2019). Furthermore, waste is also generated due to the limited shelf-life of crops that has been modelled in few models Villalobos, 2011a, 2011b).…”