Journal of Optimization and Supply Chain Management

Journal of Optimization and Supply Chain Management

Linear Programming-Based Design and Tactical Planning of a Multi-Echelon Floriculture Supply Chain

Document Type : Research Paper

Authors
1 Department of Industrial & Production Engineering, Rajshahi University of Engineering & Technology, Rajshahi, Bangladesh
2 Department of Statistics and Data Science, Jahangirnagar University, Dhaka, Bangladesh
Abstract
Objective: The floriculture market in Bangladesh has chronic problems of product perishability as a result of absence of cold chain warehouses and distribution inefficiencies. This paper formulates an LP-based model to develop and optimize a multi-echelon floriculture supply chain of farms, distributors, retailers and customers.
Methods: The model will optimize the overall system costs such as the production cost, transportation cost, storage cost and waste cost within the demands satisfaction and perishability conditions. The study optimizes material flows, levels of inventory and echelons waste using a dataset that is representative of the Bangladeshi flower market.
Results: Findings indicate that a total demand can be efficiently served by four distributors whereas under optimal conditions, inventory and waste are to be completely avoided. The sensitivity analysis with different demand and shelf life proves the strength of the model, which provides the model with the consistent performance and flexibility under the changing market conditions.
Conclusion: The results highlight the possibilities of LP-based optimization as a decision-support tool to increase the efficiency, reduce the losses, and improve the sustainability of the supply chain of floriculture in the emerging economies.
Keywords

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