Milk Supply Chain Network Design (SCND)

2020 ◽  
Vol 11 (3) ◽  
pp. 63-120
Author(s):  
Monalisha Pattnaik

This study is based on a real-life case study of a SCND of a single milk product (premium milk) of a leading milk producing organization in Odisha. This product is highly perishable in nature; SCND implicates decision-making at a strategic level. Network design is the basis for the efficient operation of supply chain, and consequently, one of the most important problems a supply chain manager has to solve. This study conducts a real-life case-based modeling to address the gap in the area of supply chain network design. The author investigates the milk supply chain network design under preservation technology and propose a generic mathematical model for milk supply chain network design encompassing economic objective. A customized mathematical model is also developed for a leading milk producing organization in Odisha. Both of the models are formulated and solved by using piecewise nonlinear optimization.

2015 ◽  
Vol 2015 ◽  
pp. 1-13 ◽  
Author(s):  
Vincent F. Yu ◽  
Nur Mayke Eka Normasari ◽  
Huynh Trung Luong

This paper proposes integrated location, production, and distribution planning for the supply chain network design which focuses on selecting the appropriate locations to build a new plant and distribution center while deciding the production and distribution of the product. We examine a multiechelon supply chain that includes suppliers, plants, and distribution centers and develop a mathematical model that aims at minimizing the total cost of the supply chain. In particular, the mathematical model considers the decision of how many plants and distribution centers to open and where to open them, as well as the allocation in each echelon. The LINGO software is used to solve the model for some problem cases. The study conducts various numerical experiments to illustrate the applicability of the developed model. Results show that, in small and medium size of problem, the optimal solution can be found using this solver. Sensitivity analysis is also conducted and shows that customer demand parameter has the greatest impact on the optimal solution.


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