# Benefit Optimization of Short Food Supply Chains for Organic Products: A Simulation-Based Approach
## 2 Materials and Methods
### Literature Review
Short food supply chains [29] are intended to redefine the relationship between the producer and the consumer, clearly and precisely indicating the origin of the product. Alternative supply chains are referred to as more natural or more local. They reflect the attempts of both producers and consumers to adapt to new types of supply and demand. The characteristic feature is an emphasis on the types of relationships that build value and improve the quality of offered products and services. The shortening of the distance between consumers and producers and the building of other types of consumer-producer relationships, and their redefinition, contribute to creating transparent chains, emphasizing information about the origin of the food, and focusing on the quality of the food, which, in turn, create added value. Shortening the distances and redesigning the relationship between the links in the chain (producers-local community) contribute to the reorientation of agriculture toward more sustainable and greener production methods [24]. These activities result in increased chain activity between different actors in the agri-food chains: farmers, processors, wholesalers, retailers, and consumers. Changing shopping preferences and the development of different distribution channels, including e-commerce, can contribute to the success and development of alternative supply chains in terms of food supply [30]. In the literature, there are three types of markets served by the SFSC. The characteristics are presented in Table 1. \begin{table}
\begin{tabular}{l l l} \hline \hline
**Market Type** & **Characteristics** & \multicolumn{1}{c}{**Examples**} \\ \hline \multirow{6}{*}{face to face} & \multirow{6}{*}{Consumer purchases a product directly from the producer/processor on a face-to-face basis. Authenticity and trust are mediated through personal interaction. The Internet now provides opportunities for a variety of face-to face contact through online trading and web pages.} & \multirow{6}{*}{\begin{tabular}{l} Farm shops \\ Farmers markets \\ Roadside sales \\ Pick your own own \\ Box schemes \\ Home deliveries \\ Mal order \\ E-commerce \\ \end{tabular} } \\ \hline \multirow{6}{*}{Spatial proximity} & Products are produced and retailed in the specific region (or place) of production, and consumers are made aware of the local nature of the product at the point of retail. Networks are mainly based on spatial proximity, so that products are sold in the region (or place of production) and consumers (e.g., tourists) are aware of the local nature of the product at the retail outlet. The expression of action in space and time, through the organization of specific events, fairs, or thematic routes, can contribute to the regional identity of the products. Consumer co-ops and community-supported agriculture can also include specialized retailers (dietary or organic products) or restaurants. & \multirow{6}{*}{\
\begin{tabular}{l} Centralion labels \\ Production codes \\ Reputation effects \\ \end{tabular} } \\ \cline{1-1}  & Value and meaning-laden information about the place of production and those producing the food is translated to consumers who are outside the region of production and who may have no personal experience with that region. In most cases, products are exported from the region to national & \multirow{6}{*}{
\begin{tabular}{l} Certification labels \\ Production codes \\ Reputation effects \\ \end{tabular} } \\ \cline{1-1}  & markets, but some extended SFSCs may span large distances & & \\ \cline{1-1}  & covering the globe. In most cases, they are exported or & \\ \cline{1-1}  & domestic products but covering a larger territorial area, e.g., & \\ \cline{1-1}  & champagne or Parmigiano Reggiano cheese or fair trade & & \\ \cline{1-1}  & products. This is not a matter of geographical proximity, but of traceability. In this case, the products and their place of origin & \\ \cline{1-1}  & are not anonymous. & \\ \hline \hline \end{tabular}
\end{table} 
Table 1: Characteristic and examples of short food supply chains (SFSCs).