An integrated production-distribution planning of dairy industry - a case study

Dibyajyoti Ghosh and Sandeep Mondal

International Journal of Logistics Systems and Management, 2018, vol. 30, issue 2, 225-245

Abstract: In dairy, where the product shelf life is too short, integrated production and distribution (P-D) planning is one of the important decision making area. This paper basically discusses one such P-D planning of an Indian milk industry. A three-echelon supply chain model is developed including suppliers, plant and retailers. Fluid milk products and milk made products are the two product families that are produced by the plant, where several important issues are considered with P-D planning like, deterioration rate of raw milk and final products, cost related issues of raw milk, transportation, collection, production, inventory, set up, and time related issues in late or early delivery of the final products to retailers. This model, in fact includes both production scheduling and distribution scheduling. A mixed integer linear programming (MILP) model is used to formulate the above situation to maximise the overall profit contribution of the business. The MILP is solved by using OPL language in CPLEX, and a comparison is made with the current business situation and the improved condition through sensitivity analysis of the collection; production and distribution parameters.

Keywords: production-distribution planning; dairy industry; mixed integer linear programming; MILP; scheduling. (search for similar items in EconPapers)
Date: 2018
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