Milk Supply Chain Network Design (SCND): A Case of the Milk Industry in Western Region of Odisha

Milk Supply Chain Network Design (SCND): A Case of the Milk Industry in Western Region of Odisha

Monalisha Pattnaik (Sambalpur University, India)
Copyright: © 2020 |Pages: 58
DOI: 10.4018/IJSDS.2020070104

Abstract

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.
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1. Introduction

SCND is one of the most vital planning problems in supply chain management (SCM). Currently, design decisions should be practicable enough to function under the complex, dynamic, uncertain and robust business environments for many decades. Due to the complexity of supply chain networks in today’s business environment, it is significant to consider several planning decisions along with the classical location-allocation decisions such as number of proposed facility locations, influence area and facility location allocation to achieve an integrated system. Network design is the basis for the efficient operation of supply chain and consequently one of the most important problems a supply chain manager is to solve. This paper conducts a real-life case-based modeling to investigate a SCND of milk product under preservation technology encompassing economic objective by developing a customized mathematical model for a leading milk producing organization in Odisha. The models are formulated and solved by using piecewise nonlinear optimization.

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