With help of a simple System Dynamics model describing purchase frequency of consumer segments, we illustrate under which circumstances a scenario of `ready-to-eat¿ positioning creates value for retailer, trader and grower in a fruit production chain. Although fully quantified, the model is meant as a discussion support tool. It illustrates how collaboration affects the pay-offs of innovation for each trade partner. We show how negotiations addressing other factors than prices optimize total chain profit and hence profit per player. These factors include ready-to-eat positioning, the variation in product ripeness within batches, and cost-sharing agreements regarding product loss and the promotional budget.
|Title of host publication||Quantifying the agri-food supply chain|
|Editors||C.J.M. Christien Ondersteijn, J.H.M. Jo Wijnands|
|Place of Publication||Dordrecht|
|Publication status||Published - 2006|
|Name||Wageningen UR Frontis Series|
Schepers, H. E., & van Kooten, O. (2006). Profitability of 'ready-to-eat' strategies: Towards modelassisted negotiation in a fresh-produce chain. In C. J. M. Christien Ondersteijn, & J. H. M. Jo Wijnands (Eds.), Quantifying the agri-food supply chain (Wageningen UR Frontis Series; No. vol. 15).. https://edepot.wur.nl/17758