Localisation and Circularity in Apple Supply Chains: An Algorithmic Exploration

TL;DR

This paper introduces a flexible mixed-integer linear programming model for optimizing apple supply chain allocation, balancing economic and sustainability goals, and supporting circularity through adjustable priorities and supply circulation.

Contribution

It presents a novel, adjustable optimization framework for localising and circularising perishable food supply chains, specifically applied to the UK apple industry.

Findings

Allocation outcomes depend heavily on priority settings.

Supply network structure significantly influences results.

The model enhances sustainability and economic efficiency.

Abstract

Localisation and circularity in perishable food supply chains are essential for sustainability. Poor allocation of time-sensitive food leads to waste, higher transport emissions, and unnecessary long-distance sourcing. Algorithms used in digital trading platforms and allocation systems can help address these problems by improving how local supply is matched with demand under real operational constraints. This paper examines localisation and circularity in the UK apple supply chain. Apples are an informative case because they are perishable, consumed fresh as dessert fruit, used as inputs across multiple food industries, and generate valuable by-products. We present a weighted-sum mixed-integer linear programming formulation for supply-demand allocation. The model encodes a single global objective with explicit weights on four operational criteria: price matching, quantity alignment, freshness requirements, and geographic distance. These weights make priorities explicit and adjustable, enabling transparent balancing between economic and sustainability considerations. The framework also supports the circulation of unallocated supply across allocation cycles. Using a realistic apple supply-demand dataset, we evaluate allocation outcomes under different priority settings. Results indicate that allocation outcomes are strongly shaped by both priority settings and the structure of the underlying supply network characteristics.