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Embedding Economies of Scale Concepts in the Model of Optimal Locations of Fresh Produce Aggregation Hubs

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  • Ge, Houtian
  • Canning, Patrick
  • Goetz, Stephan
  • Perez, Agnes
  • Li, Jie

Abstract

Food hubs are of interest in regional and local food system development because they potentially enhance the sustainability of food supply chains. Expanding on earlier literature, this study introduces economies of scale into an aggregation hub location model and disaggregates production into four seasons to account for geographic and seasonal variation of US fresh produce production. A mixed integer linear programming model is formulated with the objective of minimizing total costs of assembly and first-handler operations. Results suggest scale economies have significant effects on the optimal number, locations, and sizes of aggregation hubs. We model regional and local food systems in a manner more consistent with economic theory and provide a richer framework for policy analysis.

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  • Ge, Houtian & Canning, Patrick & Goetz, Stephan & Perez, Agnes & Li, Jie, 2019. "Embedding Economies of Scale Concepts in the Model of Optimal Locations of Fresh Produce Aggregation Hubs," Agricultural and Resource Economics Review, Cambridge University Press, vol. 48(3), pages 365-387, December.
    • Handle: RePEc:cup:agrerw:v:48:y:2019:i:3:p:365-387_2
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    Cited by:

    1. Venera Timiryanova & Konstantin Grishin & Dina Krasnoselskaya, 2020. "Spatial Patterns of Production-Distribution-Consumption Cycle: The Specifics of Developing Russia," Economies, MDPI, vol. 8(4), pages 1-18, October.
    2. Ge, Houtian & Baker, Quinton J. & Gomez, Miguel I. & Jaromczyk, Jerzy & Yi, Jing, 2022. "Assessing the carbon footprint of fresh produce assembly and distribution in the U.S," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322537, Agricultural and Applied Economics Association.
    3. Ge, Houtian & Goetz, Stephan J. & Cleary, Rebecca & Yi, Jing & Gómez, Miguel I., 2022. "Facility locations in the fresh produce supply chain: An integration of optimization and empirical methods," International Journal of Production Economics, Elsevier, vol. 249(C).
    4. Chethana Chandrasiri & Subodha Dharmapriya & Janappriya Jayawardana & Asela K. Kulatunga & Amanda N. Weerasinghe & Chethana P. Aluwihare & Dilmini Hettiarachchi, 2022. "Mitigating Environmental Impact of Perishable Food Supply Chain by a Novel Configuration: Simulating Banana Supply Chain in Sri Lanka," Sustainability, MDPI, vol. 14(19), pages 1-20, September.
    5. Aaron Kinyu Hoshide, 2022. "Back to the Future: Agricultural Booms, Busts, and Diversification in Maine, USA, 1840–2017," Sustainability, MDPI, vol. 14(23), pages 1-24, November.
    6. Ge, Houtian & Gomez, Miguel I. & Peters, Christian, 2022. "Assessment of the economic viability of grass-fed beef production in the Northeastern U.S," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322487, Agricultural and Applied Economics Association.
    7. Ge, Houtian & Gomez, Miguel I. & Peters, Christian, 2023. "The environmental impacts and economic viability of grass-fed beef production in the Northeastern U.S," 2023 Annual Meeting, July 23-25, Washington D.C. 335742, Agricultural and Applied Economics Association.

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