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Determining the optimal food hub location in the fresh produce supply chain

Houtian Ge (Charles H. Dyson School of Applied Economics and Management, Cornell University, Ithaca, New York, USA )
Jing Yi (Department of Agricultural and Applied Economics, University of Wisconsin-Madison, Madison, Wisconsin, USA)
Stephan J. Goetz (Department of Agricultural Economics, Sociology and Education, Penn State University, University Park, Pennsylvania, USA)
Rebecca Cleary (Department of Agricultural and Resource Economics, Colorado State University, Fort Collins, Colorado, USA)
Miguel I. Gómez (School of Applied Economics and Management, Cornell University, Ithaca, New York, USA )

Journal of Modelling in Management

ISSN: 1746-5664

Article publication date: 13 August 2024

94

Abstract

Purpose

Using recent US regional data associated with food system operations, this study aims at building optimization and econometric models to incorporate varying influential factors on food hub location decisions and generate effective facility location solutions.

Design/methodology/approach

Mathematical optimization and econometric models have been commonly used to identify hub location decisions, and each is associated with specific strengths to handle uncertainty. This paper develops an optimization model and a hurdle model of the US fresh produce sector to compare the hub location solutions between these two modeling approaches.

Findings

Econometric modeling and mathematical optimization are complementary approaches. While there is a divergence between the results of the optimization model and the econometric model, the optimization solution is largely confirmed by the econometric solution. A combination of the results of the two models might lead to improved decision-making.

Practical implications

This study suggests a future direction in which model development can move forward, for example, to explore and expose how to make the existing modeling techniques easier to use and more accessible to decision-makers.

Social implications

The models and results provide information that is currently limited and is useful to help inform sustainable decisions of various stakeholders interested in the development of regional food systems, regional infrastructure investment and operational strategies for food hubs.

Originality/value

This study sheds light on how the application of complementary modeling approaches improves the effectiveness of facility location solutions. This study offers new perspectives on elaborating key features to encompass facility location issues by applying interdisciplinary approaches.

Keywords

Acknowledgements

This research was supported by the US Department of Agriculture (USDA) under USDA NIFA grant no. 2019-67023-29344.

Citation

Ge, H., Yi, J., Goetz, S.J., Cleary, R. and Gómez, M.I. (2024), "Determining the optimal food hub location in the fresh produce supply chain", Journal of Modelling in Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JM2-02-2024-0042

Publisher

:

Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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