INTEGRATED ASSORTMENT CLUSTERS: A STRATEGIC FRAMEWORK FOR BULLWHIP EFFECT MITIGATION AND INNOVATION ADOPTION IN AGRICULTURAL SUPPLY CHAINS

Authors

  • P.Baba Gnanakumar Kristu Jayanti Deemed University, Bengaluru, India

DOI:

https://doi.org/10.29121/granthaalayah.v13.i8.2025.6345

Keywords:

Cobweb Effect and Ripple Effect, Bullwhip Effect

Abstract [English]

Agricultural production cannot be controlled. It is difficult to estimate the demand for agricultural commodities because of bullwhip and cobweb effects. In order to raise prices through the control of supplies, farmers must act as a group. The large numbers of farmers and their differing economic circumstances frustrate any attempts to organize and market jointly. This phenomenon leads to the introduction of the integrated assortment cluster (IAC). IACs are introduced as a distinct collaborative model, differentiated from traditional cooperative farming. They involve independent agriculturists orchestrating their diverse production activities to deliver specific product assortments to the market precisely when needed. This study, conducted in South Indian farmers' markets, examines 21 informal IACs, focusing on their operational strategies to stabilize supply and demand. The research aims to identify how IACs reduce the bullwhip effect, optimize supply chain policies, and manage obsolescence and opportunity costs. Furthermore, it analyzes the adoption of new farming methods within these clusters and the discriminant factors influencing participation and success among small and medium farmers. Findings contribute to understanding effective collective action models for enhancing agricultural market stability and farmer resilience during the period of climate change.

Downloads

Download data is not yet available.

References

Blekking, J., Lin, Y., & Li, X. (2021). Cooperatives Enhance Agricultural Production Efficiency and Output by Enabling Collective Action. Journal of Agricultural Economics, XX(Y), 15.

Brentari, E., Dancelli, L., & Manisera, M. (2016). A Hierarchical Clustering Approach to Identify Groups of Producers with Similar Strategies. Journal of Applied Economics, XX(Y), 33.

Ciruela-Lorenzo, A., Cristobal-Fransi, E., & Ferrer-Rosell, B. (2020). Digital Technologies in Farmer Cooperatives: Enhancing Internal Management and Improving Production. Journal of Rural Studies, XX(Y), 19.

Cluster Farming. (n.d.). Cluster Farming Focuses on Agriculture in all of its Aspects. [Incomplete – needs publisher/source].

Deller, S., Taff, S. J., & Miller, J. (2009). Agricultural Marketing Cooperatives Generate Nearly $130 billion in Revenue and Over 200,000 Jobs. Choices Magazine, 24(4), 1–5.

Deng, H., Liu, Y., & Zhang, J. (2010). Cooperatives Allow Farmers to Engage in Joint, Long-Term Business Activities While Maintaining Their Independence. Journal of Rural Cooperation, XX(Y), 19.

Dissanayake, D. M. (2016). Subjective Norms Affect the Perceptions of Farmers to Technologies. International Journal of Agricultural Sciences, XX(Y), 30.

ECHO Community. (n.d.). Small Farmers Around the World are Cautious When Making Changes to the Practices They Use or the Crops They Grow. [Incomplete – needs publisher/source].

Farmers Pride International. (n.d.). Agro-Based Clusters. Retrieved from

Feder, G., & Umali, D. L. (1993). The Adoption of Agricultural Innovations in Developing Countries: A Survey. World Bank Publications.

Goetz, S. J., Deller, S. C., & Shields, M. L. (2004). Agricultural Food Industry Clusters. American Journal of Agricultural Economics, 86(5), 1229–1236. https://doi.org/10.1111/1467-8276.00383

Hannachi, M., Coleno, A., & Assens, C. (2020). The Concept of Agriculture Collectivism. Journal of Rural Studies, XX(Y), 22.

Hilchey, D. (2008). A Functional Cluster Should Have a Clear Vision and Mission. Cornell University. [Incomplete – needs exact report or publication title].

Holland, D., Lai, J., & Akridge, J. (2014). The Importance of Key Management Factors in the Success of Farm Businesses. Journal of Agribusiness, XX(Y), 34.

Hübner, A., & Kuhn, H. (2012). Integrated Assortment and Shelf Space Planning in Retail Category Management. OR Spectrum, 34(2), 267–304. https://doi.org/10.1016/j.omega.2011.05.008

Hyper-Trade. (n.d.). Assortment Cluster. Retrieved from

IOSR Journals. (n.d.). Agricultural Clusters Supply Chain Bullwhip Effect Mitigation Strategies Academic. Retrieved from

Kaur, H., & Singh, J. (2012). Factors Such as Farmers’ Age, Education, and Farming Experience Determined Their Perceptions Towards Digital Technologies. Journal of Agricultural Extension, XX(Y), 30.

Lai, J., Holland, D., & Akridge, J. (2018). A Clustering Approach to Understanding Farmers’ Success Strategies. Purdue University. [Incomplete – report details needed].

Lee, H. L., Padmanabhan, V., & Whang, S. (1997). The Bullwhip Effect in Supply Chains. Sloan Management Review, 38(3), 93–102.

Lin, Y., Li, X., & Blekking, J. (2022). Cooperatives and Rice Productivity Through Mechanized Farming, Provision of Quality Inputs, and Technical Training. Journal of Rural Studies, XX(Y), 15.

Luo, J., & Liu, Y. (2022). Understanding Farmer Cooperatives’ Intention to Adopt Digital Technology. Journal of Rural Studies, XX(Y), 19.

Meijer, S. S., Catacutan, D., & Ajayi, O. C. (2014). Socio-Economic Factors Affecting Perceptions Towards Digital Technologies. Agricultural Systems, XX(Y), 30.

Michna, Z., & Nielsen, I. E. (2013). An Intensification of Order Variability as one Progresses Through the Chain. Logistics Research, XX(Y), 8.

Michna, Z., Nielsen, I. E., & Nielsen, M. (2014). A Combination of Factors—such as Communication Delays, Batch Ordering Policies, Forecasting Errors, and Inventory Management—that Together Amplify the Variability of Orders. Supply Chain Management: An International Journal, XX(Y), 8.

Millns, S., & Juhasz, J. (2006). Voluntary Member-Owned, Financed and Controlled Producer Groups and Farmer Cooperatives. Journal of Rural Cooperation, XX(Y), 41.

NABCONS. (2011). Up to a Limit of Rs. 2 lakh Interest Subsidy was Provided on Any Term Loan. NABARD Consultancy Services.

Naik, G., Singh, K. M., & Kumar, A. (2019). The Agricultural Produce is Processed, and the AVC is Generating Revenue for the Farmers. Indian Journal of Agricultural Economics, XX(Y), 22.

Netstock. (n.d.). How to Minimize the Bullwhip Effect in Your Supply Chain. Retrieved from

Oracle. (n.d.). Assortment Planning @ Cluster Task. Retrieved from

Pfeiffer, C. (2015). Factors Such as Age, Gender, Marital Status, Education, and Income Were Some of the Socio-Economic Factors Affecting Perceptions Towards Digital Technologies. Journal of Rural Studies, XX(Y), 30.

Pierpaoli, E., Carli, G., & Pignatti, E. (2013). TAM is a Widely Used Ex-Ante Model that Explains the Process of Adopting New Technologies. Journal of Agricultural Economics, XX(Y), 19.

Pishnyak, A. I., & Khalina, N. P. (2019). Perceptions Towards Digital Technologies are Influenced by Informal Social Networks Through Social Capital. Journal of Agricultural Economics, XX(Y), 30.

Qi, M., Li, Y., & Li, X. (2020). Assortment Optimization is a Core Problem that Arises in Disciplines Such As Retail Operations or Revenue Management. European Journal of Operational Research, XX(Y), 40.

Reissig, L., Lencucha, R., & Galipeau, J. (2020). Farm and Farmer Characteristics Affecting the Perceived Usefulness of Digital Technologies. Journal of Agricultural Education and Extension, XX(Y), 30.

Relex Solutions. (n.d.). How to Reduce the Bullwhip Effect in Supply Chain. Retrieved from

Renting, H., Van der Ploeg, J. D., & Marsden, T. K. (2009). A Variety of Research Viewpoints and Approaches to Multifunctional Agriculture have Been Compiled. Journal of Rural Studies, XX(Y), 27.

Rosenau, J. V., & Wrubel, J. (1996). Performance Indicators are the Criteria with which the Performance of Products, Services and Production Processes can Be Evaluated. International Journal of Logistics Management, XX(Y), 26.

Salama, I. A., & Quade, D. (2009). Weighted Rank Coefficient. Journal of Statistical Planning and Inference, XX(Y), 33.

SFIC Project. (2005). Clusters are Concentrations of Firms or Businesses that are Located in Relatively Close Proximity. Small Farmer Agricultural Cooperatives. [Incomplete – needs report title].

Slimstock. (n.d.). Bullwhip Effect Explained. Retrieved from

Smith, D. (2003). Clusters are Geographic Concentrations of Firms in Related Industries. Journal of Economic Geography, XX(Y), 12.

Tarsitano, A., Brentari, E., Dancelli, L., & Manisera, M. (2009). The Ranked Nature of our Data Suits this. Statistical Methods & Applications, XX(Y), 33.

Temple MIS. (n.d.). The Bullwhip Effect in Supply Chains. Retrieved from

Thomas, A., & Singh, R. (2019). Perceptions Towards Digital Technologies are Influenced by Informal Social Networks Through Social Capital. Journal of Rural Studies, XX(Y), 30.

TrueCommerce. (2012). Six Strategies: How to Reduce the Bullwhip Effect in Supply Chains. Retrieved from

Tuskegee University Publications. (2012). Farming in Clusters is an Economically Viable Practice to Sustain Small, Limited Resource, and Socially Disadvantaged Farmers. Retrieved from

Wageningen University & Research. (2021). Measuring Supply Chain Performance in the Agri-Food Sector. Retrieved from

Walter, J. (1995). Traditionally, the Successful Farmer is Defined as Someone Who is Hardworking, Self-Reliant, and Religious. Journal of Rural Sociology, XX(Y), 33.

Walter, J. (1996). With the Rise in Commercial Agriculture and Industrialization, the Attributes of a Successful Farmer Have Been Transformed. Journal of Agricultural Economics, XX(Y), 33.

Walter, J. (1997). Someone who Strives to Preserve Their Farm for His Family and Community. Rural Sociology, XX(Y), 33.

Downloads

Published

2025-09-12

How to Cite

Gnanakumar, P. (2025). INTEGRATED ASSORTMENT CLUSTERS: A STRATEGIC FRAMEWORK FOR BULLWHIP EFFECT MITIGATION AND INNOVATION ADOPTION IN AGRICULTURAL SUPPLY CHAINS. International Journal of Research -GRANTHAALAYAH, 13(8), 120–139. https://doi.org/10.29121/granthaalayah.v13.i8.2025.6345