Developed as a companion to the Red Brand Canners (RBC) case, the starting point in this case is to improve performance by optimizing the approach in the original case. However, RBC vice-president of operations, concerned about the quality and quantity of a mixture of the latest crop of tomatoes grown from Greenfield Farms (GF). RBC preferred quality and quantity of the mixture is much different from the current crop. In terms of the RBC, the question is how to motivate suppliers to agricultural production to the needs of RBC. Initially, both firms in the B-to-B-part of the supply chain try to find a combination that will be mutually beneficial, the attempt fails, because the existing conflict of interest. RBC goal can be reached by taking the approach of supply chain and changing the supply agreement on the appropriate pricing schemes. The task is to identify and calibrate the price scheme, which will realize the maximum performance of the supply chain and lead to a stable and mutually beneficial solution. The conclusion of the supply chain are the best prices by developing and solving a linear optimization model. "Hide
by Christoph von Haehling Lanzenauer, Olaf Pohl Source: Richard Ivey School of Business Foundation 5 pages. Publication Date: August 10, 2012. Prod. #: W12126-PDF-ENG