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Procurement of agricultural products using the CPFR approach

Article Information:

Title:

Procurement of agricultural products using the CPFR approach

Author(s):

Xiao Fang Du, Stephen C.H. Leung, Jin Long Zhang, K.K. Lai

Journal:

Supply Chain Management: An International Journal

Year:

2009

Volume:

14

Issue:

4

Page:

253 - 258


ISSN:

1359-8546


DOI:

10.1108/13598540910970081

Publisher:

Emerald Group Publishing Limited


Acknowledgements:

The work described in this paper was fully supported by a Strategic Research Grant from City University of Hong Kong (Project No. 7001909).

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Abstract:

Purpose – This paper seeks to apply a framework of collaborative planning, forecasting and replenishment (CPFR) to develop a procurement model for agricultural products.

Design/methodology/approach – Considering the biological nature, seasonality and perishable characteristics of agricultural raw materials and products, the paper revises the CPFR reference model. Then, the paper constructs a n-tier CPFR procurement model by extending a two-echelon supply chain to a multi-echelon supply chain and incorporating upstream suppliers in the supply chain. Moreover, the concept of collaborative transportation management (CTM) is integrated into the n-tier CPFR procurement model. Finally, a case study is analysed and the efficacy of the proposed model is also validated.

Findings – The finding suggests that CPFR approach is applied in the procurement of agricultural products. The case results show that the service level is increased and inventory variance is reduced. The proposed model can thus improve the accuracy of forecasting and reduce inventory losses.

Originality/value – The paper offers a useful insight into procurement of agricultural products. The proposed model is a useful development for the agricultural industry in implementing CPFR in the future.

Keywords:

Agricultural products, Business planning, Forecasting, Procurement, Supply chain management


Article Type:

Research paper


Article URL:

http://www.emeraldinsight.com/10.1108/13598540910970081

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