SUPPLY CHAIN OF VEGETABLE FORCING IN HUNGARY
Zsolt Tégla and
Csaba Szűcs
Journal of Central European Green Innovation, 2015, vol. 03, issue 2, 13
Abstract:
The competitiveness of the economic actors is basically determined by the efficiency of their supply chain. The optimization works best if it begins at the end user of the supply chain and the planning starts with determining the needs and requirements. All the elements of each sub-process can be simulated from sales (in the case of biomass it means incineration in a heating plant) through production (establishing energy forests) to the packed fresh vegetables grown in the cultivation equipment. The firms interconnected in the supply chain represent potential markets for research because the current uncertain economic situation poses a major challenge for business leaders in decision-making. The goals is to create intelligent employment plants which allow profit to remain in the rural areas, provide healthy fresh vegetables at a very affordable price, and also generate revenue for the owner in a predictable way. The use of a logistic approach at every stage of forced vegetable production is timely. The logistics optimization and unification of the “softened, 95%” monitoring system is needed in the greenhouse vegetable forcing.------------------------------------------------- The supply chain of fresh agricultural products basically leaves the internal features of agricultural or manufactured products intact. In the case of such products the main processes are handling, storage, packaging, distribution, and sales. (Van der Vorst et al., 2005) The distribution chain actors are aware that even the high quality products are exposed to deterioration over time in the distribution chain and the decay rate is highly dependent on the environmental variables (Van der Vorst et al., 2005). The competitiveness of fresh (raw) products obtained through vegetable forcing depends largely on what kind of processing levels / added value they represent. When purchasing goods customers use their eyes therefore packaging determines the value of the product to a large extent. Packaged products can be sold at a 30-40% higher price. At the same time packaging is also important from a logistics point of view because it is also a cost-saving factor. (Mathias M. C. 2007) Logistical costs are related to the costs of existing models and tools, as well as resources. For example when storing is necessary the operation cost includes the cost of material handling and storing as well. The inventory shortages may result in decreasing market share or increased risks of production. (Boute et.al, 2011) Monitoring of the usage time period is essential in handling stocks so that no goods could remain in the warehouse or distribution network after the warranty period is expired. (Bentley, 2011) The distribution logistics systems including both small grocery stores and large department stores increasingly require convenient packaging. The law regulated traceability of goods from producers of consumers can be managed significantly more easily if the goods are transported to the point of sale readily packed and properly signed and marked. Filling the shelves in the sales area is simpler and less labour-intensive when peppers, tomatoes and other greenhouse vegetables are delivered in appropriate packaging and compartments to the shop. Due to the high labour-intensive nature of packaging of forced vegetables more jobs may be created while these costs can be realised in the price of the final product.
Keywords: Farm Management; Production Economics (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:hukrgr:206669
DOI: 10.22004/ag.econ.206669
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