Stochastic Modelling Frameworks for Dragon Fruit Supply Chains in Vietnam under Uncertain Factors

Abstract

Managing uncertainties and risks is always a difficult but fascinating task in fresh fruit supply chains, especially when dealing with the strategy for the production and conveyance of fresh fruit in Vietnam. Following the COVID-19 outbreak, the confluence of economic recession and persistent adverse weather conditions has exacerbated challenges faced by dragon fruit cultivators. This research investigates a two-stage stochastic programming (TSSP) approach which is developed and served as a valuable tool for analyzing uncertainties, optimizing operations, and managing risks in the fresh fruit industry, ultimately contributing to the sustainability and resilience of supply chains in the agricultural sector. A prototype is provided to illustrate the complex and dynamic nature of dragon fruit cultivation and consumption in Vietnam. Data on the selling prices of dragon fruit were collected from several sources between 2013 and 2022 in Binh Thuan Province, Vietnam. The results were obtained from the model by using three different approaches in order of their versatility and efficacy: (1) Scenario tree generation; (2) Sample average approximation; (3) Chance-constrained programming.

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