Multi-stage, multi-product and multi-period milk supply chain network design: a case of coastal region of Odisha

Abstract

Due to the complexity of supply chain networks in today’s business environment, it is important to consider several strategic planning decisions along with the classical location-allocation decisions to achieve an integrated system. In this paper, a milk supply chain network design (SCND) problem of coastal region Odisha is considered. The proposed model is focussed on multi-stage, multi-product and multi-period supply chain network design of milk of a dairy industry. The network design includes the strategic decision-making approach of influence area, order quantity, replenishment cycle time, preservation factor and number of proposed distribution centre of milk products. This supply chain network design generic model of the milk products is developed as a mixed integer non-linear programming (MINLP) model. It is solved by using piecewise nonlinear optimization approach for location-allocation decisions of the clusters. The sensitivity analysis is also conducted to check the importance and influence of the model parameters on total supply chain network profit per unit time of the multi-milk product. Through a real-world dairy industrial case of multi products, this proposed SCND generic model is demonstrated and then customized model is developed for the case analysis. It is observed that the total supply chain network profit per unit time for the proposed model is more than that of existing model. Hence the strategic conditions like the service region must be greater than the influence area and imposing preservation effort for the multi-milk product can be a mechanism for revenue growth of the supply chain network design.