LITERATURE It is the planning and control of

LITERATURE
REVIEW

There have been many studies done on the risks that
the farmer faces in agriculture but farmer being only one component of supply
chain it becomes important to identify and understand the various risks that
the whole supply chain of apple crop faces.

Supply chain concept

Supply
chain is the network of organizations that are involved,  through 
upstream  and  downstream 
linkages, in the different processes and activities that produce value
in the form of products and services in the hands of the ultimate customer or
consumer.In  otherwords,  a 
supply  chain  consists 
of  multiple partners/firms, both
upstream (supply) and downstream (distribution), and the final consumer. It is
the planning and control of the flow of total material and goods from  suppliers 
to  manufacturers  to 
distributors  and finally to the
end users. Supply chain refers to all those activities associated with the
transformation and flow of goods and services, including their attendant
information flows, from the sources of raw materials to end users. Supply chain
management (SCM) may be defined as a set of approaches utilized to efficiently
integrate suppliers,  manufacturers,  warehouses, 
and  stores,  so 
that merchandise is produced and distributed at the right quantities, to
the right locations, and at the right time, in 
order  to  minimize 
system-wide  costs  while 
satisfying  service  level 
requirements.  It  involves 
many independent  organizations  and 
develops  through intra and inter-organizational  integration 
and  coordination that encompasses
the initial  stage  to 
the  end user. It includes a
two-way flow of materials, services 
and  information,  and 
the  related  managerial 
and operational  tasks.  It 
aims  at  providing 
high  value  to 
customers with appropriate resource utilization, and building
competitive advantage. The key elements involved in a Supply chain are
customer  value,  competitive 
advantage  and  integration 
and coordination. (Negi. S., 2014)

Supply
chain risk in food industry

Supply
chain risk may result from unexpected variations in capacity constraints, or
from breakdowns, quality problems, fires or even natural disasters at the
supplier end. A failure of any one element in a supply chain potentiallycauses
disruptions for all partnering companies upstream and downstream

There
are five main risks identified in the supply chain of food industry:

Macro level risks

The
macro level risks for the food supply chain are due to natural disasters,
diseases,  political unrest in the
region, government regulations, terrorist attacks,  labor strikes and sometimes  lack of skilled personnel.

2)
Demand management risks

Demand
management risk in a supply chain is connected to demand for the product.Demand
for a product can change suddenly due to changes in customer tastes, economic
downturn failure to communicate with customers or an increase in the bargaining
power ofcustomers, or sometimes demand can become more volatile.

3)
Supply Management Risks

Supply
management risk in a supply chain is often associated with obstacles at the
supply end. This mainly includes a failure in communications between the client
and asupplier, failure of the partnership between them, poor quality of the
supplied goods, and delays at the supplierend.

4)
Product/Service Management Risks

Product/service
management risk is caused by maintaining an inventory level which istoo high,
thus increasing holding costs, or by underutilized capacity.

5)
Information Management Risks

Information
management risk in the supply chain is due to errors in forecasting thedemand
for the product, distortions in the information sharing and failures in IT
systems. (Ali Diabat, 2011)