System Dynamics Simulation to Test Operational Policies in the Milk-Cheese Supply Chain Case study: Piar Municipality, Bolivar State, Venezuela.

With the purpose of detecting the impact that variations of demand cause in the milk-cheese supply chain, and determining how the operational policies of capacity, inventories or labor force can mitigate this impact, a system dynamics simulation model has been designed based on a survey conducted on a sample of cheese manufacturers and their links with milk farms, transportation companies and cheese distributors. This supply chain will be consolidated when a milk center that will collect the raw milk is completed. From this center, and after adequate treatment, milk will be distributed to the different cheese manufacturers in the supply chain. Managing adequately the milk-cheese supply chain represents an important challenge due to the short life of these products. Although this study was done in a region in Latin America, its results can be applicable to food supply chains by introducing some modifications. The milk-cheese supply chain in this case study contemplates three milk producers, one milk center, five cheese producers and several distributing agents. These companies operate individually under normal conditions, but they have understood that their integration in a supply chain improves the competitiveness of all its members. That is to say, the sum is greater than the parts. For its initial design a simulation software model is used in which the resources of the supply chain are optimized. Later the product of this optimization facilitates some initial values to be used in the system dynamics model in which causeeffect or influence relationships have been previously established considering the most representative variables. Finally, changes in operational policies that can reduce the level of pending orders in the supply chain are tested using other simulation software. The main contribution of this research is that it can serve as support or contribute to reduce the uncertainty in the decision making process of the supply chain management due to the speed with which individual or combined policies can be analyzed. In response to a variation of demand the most adequate policy may be selected and that can be done before the policy is implemented

New Design Guidelines for in-plant Milk-run Systems

Tugger trains became a popular means of supply in material handling intensive production systems. In contrast to forklift trucks they interlink a supermarket with multiple delivery locations along a transport route in a milk-run. But the efficiency gain (higher transport capacity, reduced labor costs) has its price: Compared to forklift trucks, planning and dimensioning of in-plant milk-run systems is more complicated. The paper discusses features and drawbacks of a recent standardization approach of the Association of German Engineers (VDI) and highlights the variety of technical restrictions which have to be considered when a milkrun system is designed. It shows, that algorithms can support the design and dimensioning process. It is, however, not feasible to formulate the design task as an ordinary optimization problem which can be handled by a solver without any further interaction

Formal Milk Processing Sector in Assam: Lessons to be Learnt from Institutional Failure

Assam initiated organised development of milk processing way back in the mid 1960s. The total installed capacity of pasteurisation and chilling plants in the State is 159 thousand and 28.5 thousand litres per day, respectively. The current scenario of the formal milk processing segment in the state is however, grim. The created infrastructure is either largely defunct or grossly under-utilized. The functional plants are operating at very low level of their installed capacity, have limited product profile, high returns of marketed milk, substantial handling and curdling losses, low productivity of capital and labour and huge operational losses. The poor performance of the plants has been attributed to the establishment of milk processing units without an appropriate assessment of output demand and input supply and ascertainment of economic viability of the plants. In addition, the supporting institutional and infrastructural mechanism has not been put in place and a systematic business and management plan to run the system has not been formulated. Drawing lessons from the institutional failure, the study has suggested some possible interventions and policy initiatives for strengthening the dairy processing activities in the state of Assam.Agricultural and Food Policy,

Identifying Carbon Reduction Potentials in Road Transportation: Creating a Carbon-Tracking Tool for Small and Medium Enterprises (SMEs)

Improving environmental performance of road transport through carbon reduction initiatives can be a demand challenge, in particular for Small and Medium Enterprises (SMEs). Whether existing carbon reduction potentials are effectively and efficiently uncovered largely depends on the availability of information as well as on how to make use of it. An often-observed problem is the lack of tools for SMEs to obtain useful carbon-related information from road transport. Against the background of a case study of the carbon-tracking tool CO2-Tec, this paper highlights the importance of decision-making information and demonstrates how carbon reduction potentials in road transportation can be uncovered for SMEs. Particular attention is paid to the information needs of the SMEs and how these needs can be fulfilled. The analysis of the results suggests a pattern of action that increases the efficacy and efficiency of information management and use in corporate practice

An Institutional Theory perspective on sustainable practices across the dairy supply chain

AbstractThe need for sustainable practices in the food supply chain, particularly in the area of energy reduction, is becoming acute. The food industry currently has to contend with multiple competing pressures alongside the new challenges of sustainable production. We applied Institutional Theory to explore the role of supermarkets in the development of legitimate sustainable practices across the dairy supply chains. The paper focuses on dairy supply chain organizations and their consumption of energy. We conducted 70 semi-structured telephone interviews with various stakeholders across the supply chain. Findings revealed that the majority of actors in the supply chain identified supermarkets as the dominant player, and that the supermarkets exert pressure on other smaller organizations across the supply chain. Although some organizations wished to pursue a sustainable agenda through integrating new rules and legitimate practices within their own organization, the dominant logic appeared to be one of cost reduction and profit maximization. There was also evidence that supermarkets and other large organizations attempt to replicate publicly available information on green successes for image purposes. We conclude that the dominant logic of cost reduction is so well established that challenging the dominant logic may prove difficult. The challenge is therefore to complement the dominant logic with sustainable practices across the whole supply chain, a role Government needs to play. This will require a broader more systemic approach to encouraging sustainable practices including investment and financing practices, so that all members of the dairy supply chain can co-operate and contribute to energy reduction

Designing the venue logistics management operations for a World Exposition

World Expositions, due to their size and peculiar features, pose a number of logistics challenges. This paper aims at developing a design framework for the venue logistics management (VLM) operations to replenish food products to the event site, through a combination of qualitative and quantitative research approaches. First, an in-depth interview methodology, combined with the outcomes of a literature review, is adopted for defining the key variables for the tactical and operational set-up of the VLM system. Second, a quantitative approach is developed to define the necessary logistics resources. The framework is then applied to the case of Milan 2015 World Exposition. It is the first time that such a design framework for a World Exposition is presented: the originality of this research lies in the proposal of a systematic approach that adds to the experiential practices constituting the current body of knowledge on event logistics

Hybrid Machine Learning/Simulation Approaches for Logistic Systems Optimization

Hoje em dia, tem-se testemunhado um abrupto crescimento e desenvolvimento da indústria, refletido no elevado grau de complexidade e inteligência que os sistemas de produção correntes apresentam, onde se destacam os sistemas logísticos. Esta incessante procura pela inovação e melhoramento contínuo são muito recorrentes na época atual, traduzindo-se em constantes transformações no conceito da qualidade de um produto. Deste modo, emerge a necessidade em otimizar os layouts fabris conduzindo a um aumento da flexibilidade face aos seus comportamentos dinâmicos. Neste seguimento surge a imprescindibilidade de aprimoramento do comportamento do veículo autónomo associado, com vista a finalidades comuns como o aumento da produtividade e minimização de custos e lead times. Neste âmbito, esta dissertação, para além da implementação do modelo de simulação do sistema logístico, desenvolve numa fase inicial comportamentos elementares a aplicar ao veículo, implementadas no próprio ambiente de simulação. Posteriormente, dado que a área de Machine Learning tem obtido tanto sucesso noutras áreas tecnológicas, surgiu o desafio da introdução do conceito de rede neuronal, através da criação de uma nova entidade designada Agente e caraterizada pela técnica de aprendizagem baseada em Reinforcement Learning. Por fim, nesta dissertação, para além de se concluir que a abordagem baseada em Reinforcement Learning proporcionou os melhores resultados de produtividade, retiraram-se ainda conclusões no que à robustez destes modelos diz respeito, a fim de avaliar a sua flexibilidade quando sujeitos a diferentes contextos, simulando um ambiente real.Nowadays, we have been witnessing an abrupt growth and development of the industry, reflected in the high level of complexity and intelligence that the current production systems present, in which the logistics systems stand out. This incessant search for innovation and continuous improvement are very common today, reproducing into constant changes in the product quality concept. In this sense, the need to optimize the factory layouts emerges, leading to an increase in flexibility because of their dynamic behaviours. In this segment, there is an essential need to improve the behaviour of the associated autonomous vehicle, to reach common objectives such as increasing the productivity and minimizing costs and lead times. In this context, this dissertation, beyond the implementation of the simulation model of the logistics system, develops, in an initial phase, elementary behaviours to be applied to the vehicle, implemented in the simulation environment itself. Subsequently, given that the Machine Learning area has been so successful in other technological areas, the challenge of introducing the concept of the neural network appears, through the creation of a new entity called Agent and characterized by the Reinforcement Learning technique. Finally, in this dissertation, in addition to concluding that the Reinforcement Learning-based approach provided the best productivity results, conclusions were also drawn regarding the robustness of these models, in order to assess their flexibility when subject to different contexts, simulating a real environment

The quiet revolution in India's food supply chains:

There has been a rapid transformation of food supply chains in India over the past two decades. Modern retail sales are growing at 49 percent per year and quickly penetrating urban food markets and even rural markets. The food-processing sector is growing quickly while also concentrating and undergoing a rapid increase in the capital-output ratio, with little increase in employment. A modern segment is emerging in the wholesale sector, with the penetration of modern logistics firms and specialized modern wholesalers.wholesale markets, Supply chains, Farmers, Supermarkets, Food processing, logistics, cold chain, Food markets,

Will Small-Scale Dairy Producers in Kenya Disappear Due to Economies of Scale in Production?

There is growing policy concern regarding the competitiveness of small-scale livestock production in the wake of the contemporary livestock revolution in many developing countries. In Kenya, this debate has focused on economies of scale and the undue influence of policy distortions on promoting the scaling up of dairy farms. This paper seeks to investigate economies of scale in Kenyan dairy in terms of relative profit efficiency at different levels of output, and identify policy and technology options to help small-scale farmers develop solutions to the challenges of competition. Data were collected from 204 dairy producers of different farm sizes in rural Kiambu and Thika, and urban Nairobi districts and a stochastic frontier model approach was used to analyze the determinants of profitability and inefficiency. Unit profitability per farm ranged between US$0.13 - US$0.16 per liter of milk with no significant variation across scales of farm. However, at all given levels of scale of farm, inefficiency significantly contributed to variability in profitability across farms. Scale had no significant effect on efficiency, confirming the relative competitiveness of small-scale dairy producers. Dairy farmers with commercial poultry achieved higher relative profit efficiency as poultry waste was fed to cattle. Rural location relative to Nairobi also increased efficiency. Linking rural areas and major market centre with good roads, strengthening of farmers' co-operative societies and exploring use of cheaper raw materials in the manufacture of concentrate feeds may strengthen the competitive position small dairy farms versus large ones.Dairy Production, Stochastic Production Frontier, Efficiency, Profitability, Livestock Production/Industries, C21, Q12,

The cluster-based development strategy in Kazakhstan's agro-food sector: A critical assessment from an Austrian perspective

This paper challenges the uselfullness of the cluster-based development strategy to diversify and increase the competitiveness of Kazakhstan's economy, regarding the case of the country's agro-food sector. For this it refers to insights of the Austrian Market Process Theory. It is argued that already the theoretical foundations of the cluster concept suffer from severe difficiencies, because it widely neglects the function of competition as a discovery procedure with alert entrepreuneurs as the driving force. Moreover, it ignores the knowledge requirements and limitations in a modern market economy for any outside third party to identify and promote successful industry structures. The closer examination of the implementation of the cluster development program in Kazakhstan's agro-food sectors shows that cluster facilitation in practice turned out to be another form of social engineering and picking winners. In the light of the Austrian understanding of the market system as an entrepreneurial discovery process the paper suggestes as alternative policy option to concentrate on the establishment of a stable institutional framework for the whole economy that stimulates the entrepreneurial discoveries of profitable businesses. Yet, such an Austrian approach is politically less appealing, for it might bring no quick results due to the prevalence of conflicting informal institutions which in the short run might be difficult to change. -- G E R M A N V E R S I O N: Der Beitrag diskutiert die Eignung der Clusterförderungspolitik zur Diversifizierung und Verbesserung der Wettbewerbsfähigkeit der Volkswirtschaft Kasachstans am Beispiel der Agrar- und Ernährungswirtschaft des Landes. Dazu wird auf Erkenntnisse der Marktprozeßtheorie der Österreichischen Schule zurückgegriffen. Es wird argumentiert, daß allein schon die theoretische Fundierung der Clusterförderungspolitik fraglich ist, weil sie die Funktion des Wettbewerbs als eines Entdeckungsverfahrens mit findigen Unternehmern als treibende Kraft vernachlässigt. Darüber hinaus unterschätzt sie die Anforderungen an das Wissen, das staatliche Akteure und beratende Ökonomen haben müßten, um erfolgversprechende Industrie- und Unternehmensstrukturen identifizieren und fördern zu können. Die Analyse der Umsetzung der Clusterförderungspolitik in Kasachstans Agrar-und Ernährungswirtschaft zeigt, daß sie praktisch nichts anderes ist als eine weitere Form von staatlichem Konstruktivismus und einer Politik der picking winners. Ausgehend vom Verständnis der Österreichischen Schule des Marktsystems als eines von findigen Unternehmern getragenen Entdeckungsverfahrens schlägt der Beitrag als alternative Strategie vor, sich auf den Aufbau von verlässlichen institutionellen Rahmenbedingungen zu konzentrieren, die für alle Sektoren der kasachstanischen Volkswirtschaft gleichermaßen gelten und die geeignet sind, den unternehmerischen Entdeckungsprozeß zu fördern. Aus politischen Gründen dürfte jedoch diese österreichische Politikoption wenig attraktiv sein, da sie langfristig angelegt ist und kurzfristig nicht zuletzt aufgrund des Konflikts zwischen formalen und informalen Institutionen keine sichtbaren Resultate erwarten lässt.Cluster,Kazakhstan,industrial policy,institutional change,Cluster,Kasachstan,Industriepolitik,institutioneller Wandel