Understanding Risks in Milk Supply Chain: An Agent-Based Conceptual Model

Milk production is inherently complex and risky business. Risks and complexities are involved in every production stage and process performed by each actors involved along the milk supply chain. It implies that the success of improving the performance of supply chain will in some degree depend on those actors' ability to cope with risks and its emerging complexities. This paper proposes a concept for analyzing the risks existing in the milk supply chain. To conceptualize, the use of agent-based methodology is offered in order to capture the risk complexities in the particular chain. A basic agent-based model that can describe the actors' behavior toward risk and the likely consequences for the entire chain completes the concept.