Luận án tiến sĩ Quản trị kinh doanh: Design and management of a perishable product supply chain in Mekong Delta of Vietnam – a case study of sweetpotato in Vinh Long Province

VIETNAM NATIONAL UNIVERSITY - HO CHI MINH CITY INTERNATIONAL UNIVERSITY PHAN THUY KIEU Student ID: PBAIU15003 DOCTORAL DISSERTATION Design and management of a perishable product supply chain in Mekong Delta of Vietnam — a case study of sweetpotato in Vinh Long Province HO CHI MINH CITY, September 2022 VIETNAM NATIONAL UNIVERSITY - HO CHI MINH CITY INTERNATIONAL UNIVERSITY PHAN THUY KIEU Design and management of a perishable product supply chain in Mekong Delta of Vietnam — a case study of sweetpotato in Vinh Long Province Major: Business Administration Major code: 9340101 Supervisor: Assoc. HO THANH PHONG HO CHI MINH CITY, September 2022 APPROVED BY: APPROVED BY: Supervisor Independent reviewer Assoc. HO THANH PHONG Assoc. DO NGOC HIEN Dr.

NGUYEN MINH PHUC ACKNOWLEDGMENT First of all, I would like to thank my advisor — Associate Prof. Ho Thanh Phong due to his immense patience, support, and his always helpful orientations, comments, and advice during my dissertation. Secondly, I also thank my lecturers at the School of Business Administration, at the Industrial and Systems Engineering Department for available knowledge in the period of coursework. From completed the comprehensive examination, I have felt more confident and proper in my research methodology, literature review, and even research design so far.

Next, I would like to express my sincere thanks to Dr Pham Huynh Tram; Dr. Nguyen Van Chung, Assoc. Nguyen Nhu Ty; Dr. Ton Nu Ngoc Han; Dr.

Nong Thi Nhu Mai; MBA. Tran Thuc Toan; MBA. Truong Thiet Ha; MBA. Nhieu Nhat Luong; MBA.

Pham Tuan Anh; MBA. Le Thi Kim Trang; and MBA. Nguyen Van Hai for sustaining and supporting in my peculiar studying way. Especially, I cherish and adore Assoc.Prof Vo Thi Thanh Loc; Assoc.Prof Tran Hoang Ngan; Assoc.Prof Nguyen Van Phuong.

All are ready to make themselves available each and every time I needed their help and advice. Thanks go also to the faculty and staff of the School of Business Administration for the help, received during my studies. Last but not least, I would like to say thank you so much more to my nuclear family, my relative extended family, my closed friends, and my best colleagues. All are for their unconditional support both physically and mentally during my years of the doctoral program.

Thank you so much. COPYRIGHT STATEMENT This copy of the dissertation has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no quotation from the dissertation and no information derived from it may be published without the author’s prior consent. Signature Phan Thuy Kieu ii ABSTRACT Not only occupying about 60% of area at Me Kong Delta region and about 12% area of Vietnam, sweet potato in Vinh Long Province has a remarkable production, in terms of quantity which is 67.8% of quantity in Me Kong Delta and about 26.9% of Vietnam in total. Sweet potato is considered as the representative fresh agricultural product of the Me Kong Delta region.

In the current time, supply chain of sweet potato is inefficient in terms of outdated technology, lack of management, and the issues of market. The dissertation research aims to improve efficiency in management and to cut off the costs of operating supply chain in Vinh Long. The objective of this research is to design the new supply chain of sweet potato so that it meets demand, functions effectively and efficiently, and brings sweet potato to customers with an acceptable price. Data for designing supply chain of sweet potato in Vinh Long consists of two categories: primary information from interviewing with local bodies, farmers, traders, and experts, secondary data from the theoretical system of the supply chain, from research, doctoral dissertation related to the supply chain and operational efficiency of fresh agricultural products supply chain in Vietnam, especially in the Mekong Delta region; and from consulting local experts in Vinh Long.

The supply chain model design is a process with two phases to support strategic decision. The first phase is Multi-objective Optimization with two objectives which are minimizing cost and minimizing transportation time. The solution of the first phase was obtained by using CPLEX software. The second phase is Multiple Attribute Decision Making (MADM) in selection process to select the location.

In this stage, the author use a special Analytic Hierarchy Process named Spherical Fuzzy Analytic Hierarchy Process (SF-AHP) and Combined Compromise Solution (CoCoSo) Algorithm in location selection. iti The final output of the model is locations of all components in supply chain of sweet potato, all production quantity and inventory. To accompany with configuration of supply chain, management concepts are introduced and discussed. Keywords: Supply Chain Design model, Sweet potato, Multi-Objective Optimization, MADM, AHP iv TABLE OF CONTENT ACKNOWLEDGMENT.

I COPYRIGHT STATEMENT ABSTRACT. TABLE OF CONTENT. LIST OF TABLES uo. cscs escscssseesesesesesesescscscscsescssscsssessssssasssesesesesescaeaes LIST OF FIGURES .ccceccecseescscessescssesesesesesesescsesssessscsescsnssssssssesesesesesessaeseeeees Ix LIST OF ABBREVIATTIONS.

Rational of Research. 1,3, RESCAVCH QAP nh nh.ssessssessssesssssssssescssesessesssuecssuecasucesnecesucesucessutensuecenneceneesanecsaeenaeees 5 1,5, Research QueStiONS 7n nhanh. Main scientific assumption of the study 1. Scope of the Research 1.

Significance of the Proposed Ñe€se€dCÌ,. Structure Of the DisSCrtAtin. Overview Agri-fresh PYOdUce. Design and Management of Supply Chain Theory.

Multi-criteria Decision-making theory (MCDM). RESEARCH MODEL AND METHODOLOGY. Explaination for mapping value CÌ@ÌH4. Using mixed integer linear programming and compromised programming to select the best distribution center SOÏHfÏOH.

Applying a hybrid MCDM - SF-AHP and CoCoSo to choose DC.---s5<-SSs+SCETHHHHHHHH HH HH HH67 3. Proposing COOrdiNAtION Im€CÌQHÌSIH. Using a case Study đDDFOACÌ. Instruments of Data COÏÏ€CHÏOM.-- 2-2 ©e£eee+EE+seeeEE+seeeEvveeeerveeeeri 69 3.

Results ofData Collection CHAPTER 4. RESEARCH RESULTS, ANALYSIS, EVALUATION 4. Determining the current supply chain of sweet potato in Vinh Long. Mathematical OJDHIHÏZ(ŒfÏOHI.--ec- sec SsŠxe‡ExteSEEteEExteerxetertrtrrtrerkresrkerrrkere 4.

Hybrid MCDM model based on SF-AHP and CoCoSo Methods to solve the DC Location Selection DFODÏ€HH. SWOT analysis for 3 selected Alternatives @ƒ'D.--e--cces-cc«esccee++ 96 CHAPTER 5. CONCLUSION, IMPLICATIONS, LIMITATIONS, AND FUTURE RESEARCH. Implications for management.ccscscsccsesesesescsescsssescscscesecsesesesesesesescsesessscssscssssesssesesesesesesesesessecscseees 42 APPENDIX 3 ooo.

eccscscsssscseseseseecssscsescseesecssesesesesesesescscscssscessessseseseeesessseesseseesssesesseees 48 APPENDIX 4 ooo. eseeccccceccsesescscscssscscscseesessesesesesesescsesescsssessscsssssesseesseseseeeeeseecssesesseees 66 APPENDIX 5 oo. 75 vi LIST OF TABLES Table 1. Average sweet potato price in 2017, 2018 (The author collected at Binh Tan District, Vinh Long Province in 201§).

Observation structure for each FaCOT.--- 5c 5ccc+sxccerrkererkerrree 11 Table 3. Vietnamses export F&V in 2018; 2019; 2020. Planted area of sweet potatoes by province from 2010 to 2019. Production of sweet potatoes by province from 2010 to 2019.

Productivity of sweet potatoes by province from 2010 to 2019. Notation of the mathematical model. Technical parameters of the mathematical model. Decision variables of the mathematical model.

Function of transportation COSt UTII. Linguistic measures of importance (Giindogdu and Kahraman, 2019). Production costs in 2017 (According to interview results). Average production cost in 2017 (According to interview results).

Transportation costs from field to warehouse of traders in 2017 (According to interview T€SUÏLS). Average price of small traders in 2017 (According to interview results) —. Average price of large traders in 2017 (According to interview results)85 Table I7. Added value production (According to the interviews).

Notation of the mathematical model.--- ¿+ +++s++s+c+cc+csx+ 89 Table 19. Payoff matrix of the mathematical model. Weighted of Alternatives. cà th nh it 92 Table 21.

List of DC location selection CTÏt€TIA. óc vs skssrsreerersrevee 93 Table 22. Results from the SF-AHP model. Weighted comparability sequence and Si value.

Exponentially weighted comparability sequence and Pi values. Final Aggregation and Ranking. Final performance score (Ki) with different A values. Using SWOT to analyze DC located in Tan Quoi Commune, Binh Tan TDISETTC(.

ng HH HH H0 11011011 gi. Using SWOT to analyze DC located in Binh Minh Town. Using SWOT to analyze DC located in Hoa Phu Industrial Park, Long Ho District. Weighted of alternatives 104 LIST OF FIGURES Figure 1.

5+ + ST TT rên 7 Figure 2. Proposed taxonomy criteria (the author bui]t). ccs 5+ ssxsxxexeeererererseree 12 Figure 4. Mekong Delta Region and South East Region of Vietnam.

Planted area of sweet potato by Province from 2010 to 2019. Production of sweet potatoes by province from 2010 to 2019. Productivity of sweet potatoes by province from 2010 to 2019. Diagram of five key elements in the SC.

SC structure €XampÌe. A generic SC network (Simchi-Levi ef al. The proposed Vinh Long’s SC design (The author built). A set of tools used in my dissertation (Author built).

The methodology approach. Research mO(elL. Summary 11 steps of mapping the value chain (M4P, 2008). Sweet potato value chain from Binh Tan District, Vinh Long Province.

Present flow of supply chain of sweet potato in Vinh Long (Determined and drawn by the QUtNors). Defined four possible routes (Created by the authors). Ranking of the alternatives with different different ^ values. Proposed supply chain of sweet potato in Vinh Long.

Three location solutions in Vinh Long Province. Distribution center at Tan Quoi — Binh Tan. Supply chain network of Alternative 1: Tan Quoi — Binh Tan. 108 ix LIST OF ABBREVIATIONS Abbreviation Full name vc Value chain VCA Value chain Analysis SC Supply chain ASC Agricultural supply chain APSC Agri-fresh produce supply chain DFSC Design for Supply Chain AFSCQ Agri-fresh food supply chain quality AFSC Agri-food supply chain AFSCM Agri-fresh supply chain management SCM Supply chain management PPSCM Perishable product supply chain management FSCM Agri-fresh supply chain management SCN Supply chain network SCND Supply chain network design QMS Quality management system PMS Performance measurement system KPI Key performance indicator IT Information technology GlobalGAP Global Good Agricultural Practices VietGAP Vietnam Good Agricultural Practices QCL Quality controlled logistics DC Distribution Center MADM Multiple Attribute Decision Making SAW Simple Additive Weighting AHP Analytical hierarchy process ANP Analytical network process TOPSIS The Technique for Order of Preference by Similarity to Ideal Solution SAW Simple additive weighting x IU International University Ho Chi Minh City OR Operations Research F&V Fruit and Vegetable FSCs Food supply chains DM Decision Making QFD Quality Function Deployment SCOR Supply Chain Operation Reference SWARA Step-wise Weight Assessment Ratio Analysis MOORA Multi-Objective Optimization Method by Ratio Analysis CODAS Combinative Distance-based Assessment DEMATEL Decision Making Trial and Evaluation Laboratory method to create a real-time location system RTLSs Real-time location system GIS Geographical Information Systems ITARA Indifference Threshold-based Attribute Ratio Analysis SWARA Step-wise Weight Assessment Ratio Analysis MOORA Multi-Objective Optimization Method by Ratio Analysis CODAS Combinative Distance-based Assessment SF-ANP Spherical fuzzy analytic hierarchy process CoCoSo Combined compromise solution LP Linear programming MILP Mixed Integer Linear programming FMCG Fast Moving Consumer Goods xi CHAPTER 1.

INTRODUCTION Chapter 1 presents the general background, the study aim and design, the problem statement and the research questions, from which objectives of the research and methodologies were raised. In addition, the chapter also presents the significance and structure of the dissertation. Vinh Long is a province located in the Mekong River Delta of southern Vietnam. Its population is 1.400 and its area is 1.

Vinh Long, one of 13 cities and provinces in the Mekong Delta Region, is in a special geographical location, with downstream of the Mekong River and between others connected to the Mang Thit River and the dense river system linking international transportation through several sea gates. With its mild climate and fertile land, Vinh Long has the immense potential for agricultural production. Master plan on socio-economic development of Vinh Long province to 2025 determine: (1) To maximize potentials and strengths of the province; boosting international economic integration; gradually strengthening internal resources, increasing cumulative rate for the economy, reducing challenge in order to form economic structure advance, open, harmonious, balance and competitive in domestic and foreign market development of Mekong river delta province; (2) To develop comprehensively towards production of high quality goods associating with deep- processing industry; ensuring ecological environment. Striving to hit average growth rate of agriculture, forestry, fisheries of over 4% - 4.5%/year in a period of 2021- 2025.

Rational of Research Sweet potato in Binh Tan district, Vinh Long province, also named Japanese purple sweet potato, the main agricultural product of Vinh Long province for exporting to China, Japan and some other markets.