Rafael Granillo-Macias
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Isidro Jesus Gonzalez Hernandez
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Jose Luis Martinez-Flores
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Santiago Omar Caballero-Morales
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Elias Olivarez-Benitez
This paper suggests a hybrid model to solve a distribution problem incorporating the impact of uncertainty in the solution. The model combines the deterministic approach and the simulation including stochastic variables such as harvest yield, loss risk and penalties/benefits to design a distribution network with the minimal cost. Through a case study that includes farmers, hubs and malt producers in the supplying chain of barley in Mexico, nine possible scenarios were analyzed to plan and distribute the harvested grain based on contract farming. This approach gets an optimal solution through an iterative process simulating the suggested solution by a mixed-integer linear programming model under uncertain conditions. The results show the convenience of maintaining the operation between four and five hubs depending on the possible scenario; besides, the variation of the levels of the barley producers’ capacities are key elements in the planning to minimize the distribution cost throughout the suggested chain
Hybrid model to design a distribution network in contract farming
