Digital twin-driven real-time planning, monitoring, and controlling in food supply chains

There needs to be more clarity about when and how the digital twin approach could benefit the food supply chains. In this study, we develop and solve an integrated problem of procurement, production, and distribution strategies (PPDs) in a medium-scale food processing company. Using the digital twin approach, the model considers the industrial symbiosis opportunities between the supplier, manufacturer, and customer using interval and sequence variables operating in a constrained environment using mixed-integer linear programming (MILP) and agent-based simulation (ABS) methodology. The study optimizes the make-span and lead time, simultaneously achieving a higher level of digitalization. The analysis demonstrates how digital twin accelerates supply chain productivity by improving makespan time, data redundancy (DR), optimal scheduling plan (OSP), overall operations effectiveness (OOE), overall equipment effectiveness (OEE), and capacity utilization. Our findings provide compelling evidence that the seamless integration PPDs enormously enhance production flexibility, resulting in an excellent service level of 94 %. Managers leverage real-time simulation to accurately estimate the replenishment point with minimal lead time, ensuring optimized operations. Furthermore, our results demonstrate that implementing PPDs has yielded considerable benefits. Specifically, we observed a remarkable 65 % utilization of the pasteurizer and aging vessel and an impressive 97 % utilization of the freezer. Moreover, by applying the DT model, the present model found a notable 6 % reduction in backlog, further streamlining operations and enhancing efficiency

Revenue Management and Demand Fulfillment: Matching Applications, Models, and Software

Recent years have seen great successes of revenue management, notably in the airline, hotel, and car rental business. Currently, an increasing number of industries, including manufacturers and retailers, are exploring ways to adopt similar concepts. Software companies are taking an active role in promoting the broadening range of applications. Also technological advances, including smart shelves and radio frequency identification (RFID), are removing many of the barriers to extended revenue management. The rapid developments in Supply Chain Planning and Revenue Management software solutions, scientific models, and industry applications have created a complex picture, which appears not yet to be well understood. It is not evident which scientific models fit which industry applications and which aspects are still missing. The relation between available software solutions and applications as well as scientific models appears equally unclear. The goal of this paper is to help overcome this confusion. To this end, we structure and review three dimensions, namely applications, models, and software. Subsequently, we relate these dimensions to each other and highlight commonalities and discrepancies. This comparison also provides a basis for identifying future research needs.Manufacturing;Revenue Management;Software;Advanced Planning Systems;Demand Fulfillment

How private enterprise organized agricultural markets in Kenya

Does liberalization of agricultural markets and an expanded role for the private sector result in a competitive market structure in Africa? The author empirically investigates the organization and development of a dynamic African export-oriented sector - Kenya's horticultural exports - in which the private sector has long had a dominant role. The author highlights the sector's impressive pattern of growth over the past two decades and examines the characteristics of participating private firms, the competitive pattern among those firms, and the institutional means by which they procure raw materials for processing and export. He finds that despite the Kenyan government's direct investments in processing and trading activities and its application of regulations and targeted support measures to strengthen the role of Kenyan Africans in the horticultural trade, most of this trade remains controlled by foreign-owned companies or members of Kenya's small minority Asian and European communities. This paper also examines the extent and forms of competition in this sub-sector and reviews the wide range of institutional arrangements adopted by private firms to coordinate their own processing and marketing activities with the farm-level production of horticultural commodities and raw materials.Markets and Market Access,Access to Markets,Agricultural Knowledge&Information Systems,Economic Theory&Research,Environmental Economics&Policies

Efficient inventory control for imperfect quality items

In this paper, we present a general EOQ model for items that are subject to inspection for imperfect quality. Each lot that is delivered to the sorting facility undertakes a 100 per cent screening and the percentage of defective items per lot reduces according to a learning curve. The generality of the model is viewed as important both from an academic and practitioner perspective. The mathematical formulation considers arbitrary functions of time that allow the decision maker to assess the consequences of a diverse range of strategies by employing a single inventory model. A rigorous methodology is utilised to show that the solution is a unique and global optimal and a general step-by-step solution procedure is presented for continuous intra-cycle periodic review applications. The value of the temperature history and flow time through the supply chain is also used to determine an efficient policy. Furthermore, coordination mechanisms that may affect the supplier and the retailer are explored to improve inventory control at both echelons. The paper provides illustrative examples that demonstrate the application of the theoretical model in different settings and lead to the generation of interesting managerial insights

REDUCING OVERALL OVERTIME HOURS ACCUMULATED BY SAN LUIS SOURDOUGH

The packaging department of San Luis Sourdough Company was redesigned to increase bread throughput and decrease overtime hours issued to employees. Time studies were performed to get an accurate representation of the average throughput of bread with the current packaging conveyor system. After collecting data and surveying the employees and management, we came up with three design solutions to improve their current packaging system. The first design recommendation has a low-investment and is quick to implement as it pertains to changing the worker’s schedule to alleviate the employees from working long hour shifts while increasing the bread throughput. The second recommendation with a little higher of an investment cost associated to it is to create a new tracking system as there currently is no way of the company knowing how many bread they have packaged and how close they are to finishing an order. The third and most expensive recommendation is to purchase more conveyor lines. This recommendation was found after running a simulation of the packaging department with different constraints and flexibility. All three of these recommendations save the company money as they would cut down on the amount of production hours needed to complete orders

The market for cocoa powder

The paper analyses the forces that shape demand and supply processes in the market for cocoa powder. A brief statistical summary is given of the main trends in international demand and production, and the spatial shifts in cocoa processing. Ample attention is given to the role of technology substitution and price factors in production decisions. The paper separately analyses the role of price, income levels and government regulation in the demand for cocoa powder. In the final part of the paper, all preceding elements are brought together in an integrated simulation model of the cocoa processing industry, showing the interactions between the market for cocoa powder and other elements of the cocoa industry (cocoa, cocoa butter, cocoa liquor, chocolate). Empirical evidence is presented with regard to main parameters of the model.cocoa, cocoa powder, industry study, simulation model, intermediate products, government regulation

PRIVATIZATION AND TRANSITION ISSUES IN RUSSIAN AGRICULTURE

Agricultural and Food Policy,

Strategic Reforms for Accelerated Agricultural Growth in Pakistan

Agricultural growth rates in the 1960s, 1970s, 1980s and 1990s show that strong growth during the 1960s was driven by several factors, including greater certainty in the use of irrigation water (as a result of an agreement with India), the introduction of productivityenhancing fertiliser-seed packages, the introduction of tubewells and the electrification of rural areas, and policy changes that improved the profitability of farming. Growth during the 1970s dropped to 2.3 percent as a result of the uncertainty created by land reforms in 1972 and 1977, severe climatic shocks, a cotton virus that depressed production for most of the decade, and political instability. The recovery in the 1980s and early 1990s can be attributed to the introduction of new cotton varieties and improved management techniques, as well as to a gradual improvement in economic incentives. Closer inspection of the nature and sources of this growth raises concerns about its sustainability and casts doubt on the ability of the sector to grow by more than 3–4 percent a year in the future. Many of the past sources of agricultural growth in Pakistan appear to have been fully exploited. Strategy for the future must effectively address the followings. Allowing the market to Operate, policy reforms that support the ongoing structural adjustment should be given top priority. To address the crisis in irrigation management market-determined incentives must be allowed to determine resource allocation within the irrigation system. Reform in extension should include establishing closer links with research institutions and reducing the number of front-line extension workers and replacing them with fewer, bettertrained workers who are more responsive to the needs of farming systems. Full-fledged land reform is difficult to enact and can be considered only after a comprehensive study of costs and benefits. Some important measures can be implemented immediately, however. Foremost is providing security of tenure to many farmers, especially tenants-at-will, thereby improving responsiveness to incentives and creating better incentives for long-term investments.