Benefit optimization of short food supply chains for organic products : a simulation-based approach

Creating alternative supply chains can help increase economic and social benefits for all beneficiaries of the supply chain. Alternative short supply chains for organic products are considered when seeking optimal scenarios to obtain the highest profit for producers, with maximizing profit being one of the main reasons for taking up business within this type of supply chain strategy. The aim of this study was to clarify the ideas of short food supply chains (SFSCs) and the organic production of food products and to indicate how economic benefits can be achieved in individual markets. The identified research gaps include the lack of a strong theoretical basis, as well as the lack of empirical studies concerning the multi-objective optimization of the economic effects of producers using computer simulation methods. However, the aim of this research was to identify the activities within such structures that can produce economic effects and influence the competences and soft relationships between the organizations participating in the chains. The adopted research methods included a critical analysis of the literature and the use of information technology tools and computer simulation. We found that computer simulation methods can lead to better decisions (to increase manufacturer benefits) regarding how to service selected markets within the SFSC. The most important limitations are the small territorial scope of the research and the consideration of only three of the most frequently purchased and manufactured products in Poland. This study was a pilot study, which will be developed further by the authors, from both a territorial and product point of view.