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SC Level of Analysis Vs Modelling Purpose and Decisions Level

CHAPTER 2: LITERATURE REVIEW

2.6 Review of Modelling Approaches for AFPSC Planning

2.6.4 Level of Analysis Vs SC Actors

2.6.4.2 SC Level of Analysis Vs Modelling Purpose and Decisions Level

When three analytical dimensions are combined, multiple cross-dimensional analysis can be conducted. For example, the model purpose can be analysed against SC levels and decision planning levels (Figure 2-10), this will help to understand decision-making behaviour when applying modelling approaches for AFPSC problems. Decision making in AFPSC planning is often supported by optimisation approaches (i.e., normative models) on both inter and intra-organisational levels (Figure 2-11). This contradicts with Brandenburg et al. (2014) findings that descriptive models are mostly employed for inter-organizational levels (i.e., chain or network) compared to normative models.

Figure 2-10: Three-Dimensional Analysis example

Figure 2-11 SC Level of Analysis against Modelling Purpose Normative Models for Intra-Organisational Level

Normative models are used for intra-organisational level of analysis (i.e., single firm) to evaluate operational and tactical planning decisions, while strategic decisions received less attention (Figure 2-12). 23% of the articles which used normative models were applied to a single firm. For example, Darby-Dowman et al. (2000) presented a stochastic model for planning planting and harvesting operations over one season. The model showed two stages of planning; one was related to the optimal use of land and time of vegetable crop planting

79% 57% 88% 50% 21% 43% 13% 50% Firm Chain Network Industry

SC Level of Analysis Vs. Modelling Purpose

Operationally, the model plans resource allocation during the planting process. A single normative model for a single firm application has integrated decision planning for tactical and strategic levels (Hester and Cacho 2003). In this model, the authors presented a strategic planning for apple orchard planting. The model considered the product selection decision in terms of apple variety to be planted in the orchard. It also investigates the biological impact of the annual thinning decision on the orchard performance.

Normative Models for Inter-Organisational Level

On inter-organisational levels, normative models for the supply chain and network levels have similar characteristics as the models of single-firm applications. On the contrary, the normative models that focus on industry applications are concerned only with the tactical and strategic levels. However, this is not surprising as the actors involved in these applications are usually representing an authority or organisation such as local governments (Atallah, Gomez, and Bjorkman 2014, Teimoury et al. 2013).

Integrated planning is presented in 33% of normative models developed for inter- organisational AFPSC applications. Similar to the single firm applications, most of these integrated planning models are employed at operational and tactical decision-making levels. For example, Rong, Akkerman, and Grunow (2011) introduced an optimisation model for fresh vegetable SC to control quality degradation of the products. The model considered products distribution and inventory levels subject to both products temperature and quality. Operational decision planning is integrated with a strategic decision only in one model (de Keizer et al. 2015). In this model, the authors addressed the hub allocation of food product and products flows over the SC network from growers to retailers through that hub. The

ultimate goal of the model is to enhance the service level and reduce distribution costs while maintaining quality requirements. Another model integrated strategic decisions with tactical decisions for a fresh food SC network (Tsao 2013). A full integration between the three levels of decision making was presented in a study where a multi-objective simulation was developed to find the optimal number and locations of facilities, transportation fleet formation, delivery routes selection and products flow (Govindan et al. 2014). The objective of the model was to support sustainability trends by considering environmental performance

indicators (PIs), such as Co2 emissions along with other financial or cost related PIs. It is also

noticed that none of these integrated models is employed for macro-level of analysis (i.e., industry).

Figure 2-12: SC Level of Analysis against Modelling Purpose for Normative Models Descriptive Models for Intra-Organisational Level

Descriptive models are used to explore and understand systems behaviour and the relationships between its parameters (Wu et al. 2010). In the AFPSC context, descriptive

54% 65% 57% 58% 50% 79% 60% 12% 5% 36% 40% Firm Chain Network Industry

SC Level of Analysis Vs. Decision Levels for Normative Models

Usually, descriptive models are efficient in examining operational decisions such as resources planning of agri-fresh produce processes on resource utilisation and operations cost (Ampatzidis et al. 2014, Zhou, Jensen, et al. 2015). This may explain the focus of these models on harvesting and packing functions where extensive resources (i.e., workers or machines) are needed. Two descriptive models are used for tactical planning, the first model is to explore the impact of different packing programs on exports of Persian lime in Mexico (Lambert et al. 2014), while the second examines different ordering and replenishment policies to reduce products losses at lettuce retailer (Tromp et al. 2016). Similarly, two descriptive models are used for strategic planning on a single firm level. Both of them are employed to examine the efficacy of replacing conventional products with organic ones for apple orchards in Canada (Keyes, Tyedmers, and Beazley 2015) and wine vineyard in Italy (Falcone et al. 2016). The objective was to assess how organic production will affect the greenhouse gas emissions against the investment costs.

Figure 2-13: SC Level of Analysis against Modelling Purpose for Descriptive Models Descriptive Models for Inter-Organisational Level

In contrast to single firms, descriptive models are mostly utilised to examine tactical decision in the industry, supply chain, and supply network applications (Figure 2-13). Integrated

43% 7% 50% 29% 87% 100% 60% 29% 13% 60% Firm Chain Network Industry

SC Level of Analysis Vs. Decision Levels for Descriptive Models

planning applications represent 13% (3 papers) of the descriptive models used for inter- organisational level of analysis for AFPSC applications. Two of them integrate operational and tactical decisions while the third model incorporates tactical and strategic decisions. The latter model studies different options for cultivation practices and design for fruit orchard to investigate their long-term financial impact and manpower employment in this sector (Cittadini et al. 2008). The planning was on the macro scale for the cherry fruit industry in the South Patagonia region in Argentina. An operational-tactical planning model was employed to explore the impact of cooperation between growers for harvesting fresh produce over different periods of flowering to face multiple markets demand (Nagasawa, Kotani, and Morizawa 2009). The authors suggested two scenarios of cooperative and non-cooperative farms and studied how each of them will impact the overall market consumption of their produce.