Profitability of 'ready-to-eat' strategies: Towards modelassisted negotiation in a fresh-produce chain

H.E. Schepers, O. van Kooten

Research output: Chapter in Book/Report/Conference proceedingChapterAcademic

Abstract

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.
Original languageEnglish
Title of host publicationQuantifying the agri-food supply chain
EditorsC.J.M. Christien Ondersteijn, J.H.M. Jo Wijnands
Place of PublicationDordrecht
Publication statusPublished - 2006

Publication series

NameWageningen UR Frontis Series
PublisherSpringer
Numbervol. 15

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