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A Multi-Objective Modelling and Optimization Framework for Operations Management of a Fresh Fruit Supply Chain: A Case Study on a Mexican Lime Company

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Abstract

The the agriculture sector in developing countries has a large production share in the global fresh fruit market. Yet, in many cases, the land production yield indices at the orchard level are lower than the values related to more technologically developed countries. This situation leads to economic losses due to poor performance in productivity, efficiency and quality, which in turn is related to a technological and managerial gap. In this chapter, an operations management framework is proposed that tries to balance the market requirements (i.e. quality and quantity) with the capacity of the production system. This is performed through a multi-objective optimization approach that helps orchard managers synchronize the production yields with market demand and quality requirements. The model also allows the production managers to have a forecasting tool based on historical data. The model integrates the full supply chain through a set of sub-models for each stage of the production life cycle. The objective of the model is to minimize cost while maximizing sales. The optimization strategy involves a variant of the so-called NSGA II algorithm. The case study of an exporting lime packaging company is developed to illustrate the proposed framework and its possible impact on performance.

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Acknowledgements

We would like to give special thanks to the Mexican National Council of Science and Technology (CONACYT) and the Ministry of Education (SEP) for funding this research project.

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Correspondence to Catherine Azzaro-Pantel .

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Appendices

Appendix 1

16.1.1 Nomenclature

p j :

sale price of each target market j

Qs j :

quantity to be sold or sold during planned time period per target market quality type j

Co j, h :

costs derived at orchard h due to cultivation of j quality type

Cp j, h :

cost derived at packaging plant from processing j quality type fruit from h orchard.

Ct j, h :

cost derived aimed at distribution and transportation

Q j :

total fruit quantity of type j from all d orchards h

R j, h :

ratio of each quality type j obtained for each orchard h

c i :

cost of each application of the agricultural practice

Qt h :

total quantity produced (e.g. kilograms) of fruit produced from a given orchard h

Cm j :

manufacturing cost incurred during packaging process to obtain j quality fruit for sale

Cpp j :

average cost of fruit processing and packaging per quality type j

Qr j :

quantity of fruit quality type j coming from third party suppliers

Cw j :

cost due to warehousing product of quality type j

Cu j :

average cost of maintaining one unit of quantity during one unit of time in storage of j quality type fruit

Qw j :

quantity of stored j quality type fruit in warehouse during a given time period

Cr j :

total cost due to outsourced vendor supplied fresh fruit to be processed.

Cvr j :

average price to pay for outsourced vendor supplied fruit per quantity unit of j type quality fruit.

Co j :

total cost incurred during production from all supplying orchards to obtain j quality fruit

16.1.2 Abbreviation

DC:

Developing countries

MLR:

Multiple linear regression

OPS:

Orchard production system

PPS:

Packaging plant system

SC:

Supply chain

TPS:

Transportation and distribution system

SO:

Seasonal orchards

IO:

Irrigated orchard

PC:

Pessimistic case

OC:

Optimistic case

HC:

Historically modelled case

Appendix 2

Variables used to control and predict orchard output yield by case study orchard.

For orchard 1:

x1:

Average estimated rain fall for period in mm

x2:

Average estimated temperature for period inC

x3:

Number of application of Phosphoric acid to be made in period

x4:

Number of application of Sulfur to be made in period

x5:

Number of application of Magnesium to be made in period

x6:

Number of applications of Potassium to be made in period

x7:

Number of applications of Micronutrients to be made in period

x8:

Number of applications of Micronutrients to be made in period

x9:

Number of applications of NPK compound to be made in period

x10:

Number of applications of Nitrogen to be made in period

x11:

Number of applications of Ammonium sulfate to be made in period

x12:

Number of applications of Benomile to be made in period

x13:

Number of applications of Dicofol to be made in period

x14:

Number of applications of Glifosate to be made in period

x15:

Number of applications of Malathion to be made in period

x16:

Number of applications of Tricarboxides to be made in period

For orchard 2:

x1:

Average estimated rain fall for period in mm

x2:

Average estimated temperature for period inC

x3:

Number of applications of Phosphoric acid to be made in period

x4:

Number of applications of Sulfur to be made in period

x5:

Number of applications of Magnesium to be made in period

x6:

Number of applications of Potassium to be made in period

x7:

Number of applications of Micronutrients to be made in period

x8:

Number of applications of Micronutrients to be made in period

x9:

Number of applications of NPK compound to be made in period

x10:

Number of applications of Nitrogen to be made in period

x11:

Number of applications of Ammonium sulfate to be made in period

x12:

Number of applications of Benomile to be made in period

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Miranda-Ackerman, M.A., Fernández-Lambert, G., Azzaro-Pantel, C., Aguilar-Lasserre, A.A. (2014). A Multi-Objective Modelling and Optimization Framework for Operations Management of a Fresh Fruit Supply Chain: A Case Study on a Mexican Lime Company. In: Valadi, J., Siarry, P. (eds) Applications of Metaheuristics in Process Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-06508-3_16

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  • DOI: https://doi.org/10.1007/978-3-319-06508-3_16

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-06507-6

  • Online ISBN: 978-3-319-06508-3

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