Developing Indian grain supply chain cost model: a system dynamics approach

Purpose – The objective of the present study is to model the total supply chain cost (TSCC) of an Indian grain chain in order to understand and predict the future outcome of each supply chain model in different situations and to devise policies accordingly to reduce TSCC. Design/methodology/approach – The system dynamics (SD) approach is used to model the TSCC model of an Indian grain chain, which takes care of the dynamic interaction of the cost variables. Findings – The major findings of the paper are the reduced cost ratios in the different scenarios. A total of nine scenarios are evaluated, which are the cooperative model, contract farming and a collaborative supply chain based on optimistic, pessimistic and most likely views. Practical implications – The practical implications are the action plans suggested to reduce TSCC in each of the future scenarios of the supply chain model that are developed in the paper. Originality/value – The TSCC model is beneficial not only for organizations entering into the food business, but also for economic policy makers.