Fresh Produce Supply Chain Network Design and Management Using Swarm Intelligence: A Case Study of Egypt

Purpose: The objective of this work is to fulfil a strategic requirement in Egypt's agriculture industry by establishing a fresh produce supply chain network (SCN) that manages the collection, processing, packaging, and distribution of products. Design/methodology/approach: A cost minimization dynamic facility location -allocation (FLA) problem is modeled and solved using a hybrid binary particle swarm optimization (BPSO) algorithm, to strategically locate a network of food aggregation hubs across the country for the collection, consolidation, and distribution of products. The hub FLA decision is then complemented with optimal fleet sizing, transportation scheduling, and routing decisions, by solving the split -delivery vehicle routing problem (SDVRP) using a hybrid ant -colony optimization (ACO) algorithm, considering positioning loading constraints, and shelf -lives of products. Findings: Two national fresh produce SCN configurations were obtained; one that minimizes the total cost of the network, and the other minimizes the number of aggregation hubs. Results showed a strong correlation between the locations and capacities of the hubs, and the locations of supply points and densely populated demand areas. The hybrid ACO algorithm was further utilized to optimize the fleet sizing, routing and scheduling decisions for one of the obtained hubs. Practical implications: Establishment of the SCN can reduce the proportion of wasted product during transit, and improve the quality of the delivered products. In addition, accounting for product spoilage has a significant effect on network design, and collection and distribution decisions. Social implications: Establishment of the SCN will improve the exposure of small farmers to wider markets, and hence their return and standard of living, and potentially reduce the prices for the final customer. Originality/value: This study is the first attempt to establish an efficient fresh produce supply chain network in Egypt. In addition, the proposed solution approach considered a multitude of problem characteristics, simultaneously for the first time.