Supply Chain Tactical Optimization in the Fruit Industry

Abstract

(Según la estructura del capítulo indicada por el editor, no se incluye abstract. A continuación se reproduce parte de la Introducción) In this chapter, a detailed and complete tactical planning model to aid in the negotiation instance of a typical large company that operates several nodes of the fruit industry supply chain is presented. The proposed linear programming model considers various interactions of the real network and the typical operative practices of the business. The model is devised to estimate the production profiles of different final products of the system (packed fruit, juice, and cider) as well as the resources profiles (fresh fruit, storage capacity, and transportation logistics) required to feasibly operate in order to maximize the total net profit of the company. Results are presented for a typical large company operating in the supply chain of the pip fruit industry of Argentina. A very realistic scenario for a negotiation instance of the company is developed and discussed. A complete set of data is provided to reproduce the entire case study formulated as a linear programming model with about 34,000 equations and 143,000 variables. Optimum profiles for the maximum provision of different products at a predetermined delivery schedule, along with an estimation of raw material and other resources requirements in order to reach that level of production, are determined by the model. These results constitute valuable information for company managers to negotiate contracts with clients and suppliers in the coming business cycle.