Distribution of direct recall costs along the milk chain
Article first published online: 5 OCT 2009
© 2009 Wiley Periodicals, Inc.
Volume 25, Issue 4, pages 466–479, Autumn (Fall) 2009
How to Cite
Velthuis, A.G.J., Meuwissen, M. and Huirne, R.B.M. (2009), Distribution of direct recall costs along the milk chain. Agribusiness, 25: 466–479. doi: 10.1002/agr.20220
- Issue published online: 5 OCT 2009
- Article first published online: 5 OCT 2009
The relation between time and the direct recall costs of one batch of milk was investigated in this study. We developed a Monte Carlo simulation model of a farm-to-consumer supply chain associated with one batch of milk of 150,000 kilograms. The direct recall costs of recalling a batch are less than €100,000 in the first 16 hours after the milk has been collected from the farms, but the costs increase rapidly to more than €140,000. With this study, we showed that a modeling approach can give insight into the relation between recall costs and time, and it can support the development of monitoring schemes at the chain level. [EconLit citations: D210, Q180]. © 2009 Wiley Periodicals, Inc.