Modeling Strategies to Improve the Terminal Market Operational Efficiency

Jiaming Xu, Houtian Ge, Miguel I. Gomez, Kristen Park and Abby Long

No 360607, 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association

Abstract: Terminal produce markets serve as critical U.S. supply chain hubs for fresh produce aggregation and distribution. However, inefficiencies and aging infrastructure heighten operational costs and diminish resilience. This study presents a computational optimization model employing Mixed-Integer Linear Programming (MILP) to establish optimal capacity and assembly patterns, minimizing costs subject to demand fulfillment. The model integrates constraints including transportation distances, product shrinkage, and economies of scale. Leveraging monthly domestic production and import data, cost-effective aggregation strategies are identified, with analysis focused on Boston and Detroit. Results demonstrate localized average cost minima at specific throughput levels, yielding actionable insights for market managers and policymakers to improve efficiency. The research furnishes a robust tool for optimizing terminal market performance in the face of logistical and economic uncertainties.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 18
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/360607/files/7 ... rket_AAEA_June18.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea25:360607

DOI: 10.22004/ag.econ.360607

Access Statistics for this paper

More papers in 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().