Facility locations in the fresh produce supply chain: An integration of optimization and empirical methods

Abstract

Facility locations are crucial determinants of supply chain efficiency for aggregating and distributing products. The multi-disciplinary nature of the facility location problem requires multiple complementary approaches, at different levels of aggregation, to accommodate the salient features of location determinants. This study examines the facility location problem for the U.S. fresh produce supply chain. We present a model that incorporates an empirical scenario into a facility location problem in order to capture much of the information required to make an optimal location decision. Our results suggest that the reliability of facility locations can be improved without significantly increasing the operating costs. This study sheds light on how the application of complementary modeling approaches improves the effectiveness of facility location solutions.