ABSTRACT

An Agri-food Supply Chain (ASC) network that consists of the Farmers’ Group and/or Cooperative (FGC) as a supplier of vegetables, Modern Retailers (MR), and end customers, is proposed in this paper. Although being able to provide a large amount of vegetable in short delivery time, FGC does not have bargaining power to determine the amount of vegetable sold due to lower skills in improving the safety and quality of vegetables supplied to the high-class consumers. However, MR needs FGC as a supplier to shorten ASC network. In order to improve performance of FGC as a supplier, MR invests some amount of money in term of Corporate Social Responsibility (CSR) programs. The CSR programs can be utilized by FGC to enhance business skills as a qualified supplier and to improve the quality of the vegetable distribution system. The framework is formulated as weighted goal programming and can be used to assess the financial risk of business performance faced by MR as the effects of CSR activities.