Optimization Model for Fresh Fruit Supply Chains: Case-Study of Dragon Fruit in Vietnam

Abstract

We present an optimization model for dragon fruit plantations in Vietnam. The timing of cultivating and harvesting decisions are taken into account as the dragon fruit plant has an approximately ten-year life cycle with maximum average yield in the fourth year. Another consideration also included is the prevalence of forward-buying contracts with locked-in prices. The dragon fruit supply chain faces several difficulties as yield, price, and demand are highly sensitive to weather conditions and global uncertainty factors. The risk factors in the dragon fruit supply chain also depend on species—for example, the red varieties, while more profitable than the white varieties, also have higher export risk because they are subject to global prices and adverse geopolitical conditions.