Application of Linear Programming Model for Managing Jasmine Rice Supply Chain Network in Thung Kula Ronghai Area of Thailand
Keywords:
Jasmine Rice, Thung Kula Ronghai, Supply Chain Network Design, Mathematical Model, Linear ProgrammingAbstract
The objective of this research was to design a supply chain network and develop mathematical models to manage an appropriate supply chain network of jasmine rice in the Thung Kula Ronghai area of Thailand. The supply chain network of jasmine rice consisted of farmers, paddy collectors (rice warehouse operators/agricultural cooperatives with no milling machines), rice producers (rice mills/agricultural cooperatives with milling machines) and customers as the primary stakeholders. Although most cultivation is currently dedicated to non-organic jasmine rice and there is very little demand for organic jasmine rice, based on the price and trend of consumption of organic rice, organic jasmine rice was also included in the supply chain network. A linear-programming-based mathematical model was then developed to properly manage the supply chain network management. The objective of this model is to maximize the total profit of supply chain network; the proposed model was solved by LINGO 11.0. The results illustrated that Thung Kula Ronghai should allocate the proportion of non-organic jasmine rice cultivation area at 0.882 and organic jasmine rice cultivation area at 0.118. Paddy rice should directly be transported by 6-wheel trucks from cultivated areas to rice mills within each province without being transported through any collectors. Milling was noted to be conducted by rice mills in all the provinces, except for Yasothon province where milling was performed by agricultural cooperatives. As for rice transportation and distribution, the rice should be transported by trailers. Non-organic jasmine rice should be distributed to various demand sources, either in the area, outside the area, and to collection points for export, while organic jasmine rice should be distributed only for consumption within the area and to collection points for export. The proposed solution predicted the maximum profit of the supply chain at 1,092 million Baht.
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