Distribution of direct recall costs along the milk chain

A.G.J. Velthuis, M. Meuwissen and R.B.M. Huirne
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A.G.J. Velthuis: Department of Business Economics, Wageningen University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands, Postal: Department of Business Economics, Wageningen University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands
M. Meuwissen: Department of Business Economics, Wageningen University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands, Postal: Department of Business Economics, Wageningen University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands
R.B.M. Huirne: Department of Business Economics, Wageningen University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands, Postal: Department of Business Economics, Wageningen University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands

Agribusiness, 2009, vol. 25, issue 4, 466-479

Abstract: The relation between time and the direct recall costs of one batch of milk was investigated in this study. We developed a Monte Carlo simulation model of a farm-to-consumer supply chain associated with one batch of milk of 150,000 kilograms. The direct recall costs of recalling a batch are less than €100,000 in the first 16 hours after the milk has been collected from the farms, but the costs increase rapidly to more than €140,000. With this study, we showed that a modeling approach can give insight into the relation between recall costs and time, and it can support the development of monitoring schemes at the chain level. [EconLit citations: D210, Q180]. © 2009 Wiley Periodicals, Inc.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:25:y:2009:i:4:p:466-479

DOI: 10.1002/agr.20220

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