An Agricultural Products Supply Chain Management to Optimize Resources and Carbon Emission Considering Variable Production Rate: Case of Nonperishable Corps
Abstract
:1. Introduction
2. Research Reviews
3. Method and Materials
3.1. Research Modeling
3.1.1. Assumptions
- The mathematical model is based on multiple types of agri-product. The constant and variable production rate with given demand is considered in respectively to avoid shortages [17].
- The agri-product processing firm outsources few operations due to limited resources. The imperfect products are produced, for which reworking is done and inspection cost is incurred. The rejected products are disposed and recycled.
- The model is applicable for non-perishable crop because it considers only a sugar processing firm with outsourcing operation.
- The processing firm consisting the combination of labor and equipment/machines to process the agri-product.
- Management of imperfection and carbon emission is considered to make the Agri-SCM a cleaner and eco-effective model.
3.1.2. Notation
3.2. Model Formulation
3.2.1. Agri-Processing Cost
3.2.2. Setup Cost
3.2.3. Production Cost
3.2.4. Holding Cost
3.2.5. Carbon Emission Costs
3.2.6. Labor Cost
3.2.7. Stress and Workers’ Efficiency
3.2.8. Stress Level and Defective Rate
3.3. Vendor Cost
3.3.1. Production Cost of Outsourcing
3.3.2. Holding Cost of Vendor
3.3.3. Inspection Cost
3.3.4. Recycling Cost/Disposal Cost
3.4. Solution Algorithm
3.5. Numerical Experiment
4. Results
4.1. Numerical Results
4.2. Sensitivity Analysis
- By changing the tool-die cost from −50% to +50%, the results exhibit a direct relation, showing respective increases of +14.11% and −14.52% in the total cost of production system. The original value is at equilibrium, showing symmetric positive and negative effects on the total cost.
- Similarly, a direct relation is found the production cost (), but the difference is that it had a smaller impact of on the total profit.
- From the sensitivity analysis, a large impact of almost on the total cost is observed by the variation of labor cost at .
- The impact of the manufacturer’s raw material cost is also significant on total cost of production i.e., at extreme values.
- The setup cost of the manufacturer shows only small effects of to on the cost by changing the rate from to , respectively.
- The outsourcing cost is found to have a less impact as compared to the production costs resulting in and at the extreme points.
- The holding costs is carrying a nominal impact on , i.e., and at extreme values. These parameters lie within range of the equilibrium position and are observed to be directly proportional to the objective.
5. Conclusions
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
Appendix A. Model Notation
J | the index used to indicate number of agri-product, j = 1, 2, ...n |
a | to indicate the parameters for first stage of agri-processing firm |
b | used with the parameters of vendor |
c | to represent the second stage of agri-processing firm |
m | used for agri-processing firm |
o | used for vendor |
Tj | cycle time to process jth agri-product (units) |
Lja | labors utilized at 1st stage to process j th agri-product (workers) |
Ljc | labors utilized to process jth agri-product at 1st during final stage (workers) |
Kja | number of machine units utilized at 1st stage to process jth agri-product (workstations) |
Kjc | number of machine units utilized to process jth agri-product during finishing stage (workstations) |
Pja | plant production rate of jth product at 1st stage (units/year) |
Pjc | plant production rate of jth agri-product by the 2nd stage of agri-processing firm (units/year) |
Crm | raw material cost of jth agri-product ($/unit) |
TDmj | manufacturer total tool-die cost of jth agri-product ($/unit) |
TDmaj | tool-die cost of jth agri-product in 1st stage of manufacturer ($/unit) |
TDmcj | tool-die cost of jth agri-product in final stage($/unit) |
gj | total indirect production cost of jth agri-product ($/unit) |
gmaj | indirect cost of jth agri-product in first stage of manufacturer($/unit) |
gmcj | indirect production cost of jth agri-product in final stage of manufacturer($/unit) |
Dj (Ω) | variable demand depending emergency level due to pandemic ($/unit) |
Qj | production quantity (units) |
lja | average labor utilized per machine in first stage of manufacturer(labor/machine) |
ljc | average labor utilized per machine in final stage of manufacturer(labor/machine) |
Wj | average wedge of labor to process jth agri-product ($/labor) |
Aj | setup cost for jth agri-product ($/year) |
hmj | manufacturer holding cost of each agri-product per cycle ($/unit/year) |
Gj | reworking cost of jth agri-product ($/unit) |
εja | production rate of each machine unit to process jth agri-product at 1st stage(units/machine) |
εjc | production rate of each machine unit at final stage to process jth product (units/machine) |
TCaj | total cost of processing agri-product ($/cycle) |
TDoj | vendor tool-die cost of jth agri-product during ($/unit) |
goj | indirect part production cost of jth agri-product with vendor($/unit) |
θj | fixed inspection cost of agri-product jth ($/year) |
αj | proportion of rejection produced in defective jth agri-product (%) |
βj | defective rate for jth product (%) |
ψj | variable inspection cost of product jth ($/unit) |
γ1 | recycling cost ($/unit) |
ρ | efficiency of the labor (%) |
Pjb | production rate of jth agri-product processed by the vendor (units/year) |
TCvj | total cost of vendor ($/cycle) |
MR | marginal rate of vendor ($/cycle) |
TCj | total cost of agri-product supply chain management ($/cycle) |
Appendix B. Production Cycle Time and Inventory Level Calculations
Appendix B.1. Cycle Time Calculation
Appendix B.2. Average Inventory Costs
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Author(s) | Two- Echelon SCM | Imperfection | Production Rate | Resources Optimization | Eco- Efficient | Agri- SCM | Methodology | ||||
---|---|---|---|---|---|---|---|---|---|---|---|
Scrap | Rework | Constant | Variable | Workforce | Machines | Combined | |||||
Bansik et al. [1] | √ | √ | √ | √ | Bi-stage stochastic programming | ||||||
Yasmine et al. [13] | √ | √ | √ | Analytical method | |||||||
Francesco Zecca [14] | √ | √ | Analytical method | ||||||||
Pablo Biswas [15] | √ | √ | √ | √ | Analytical optimization | ||||||
Tayyab [16] | √ | √ | √ | Analytical optimization | |||||||
Wang et al. [21] | √ | √ | √ | Normalized constraint method | |||||||
S Sarkar [26] | √ | √ | √ | √ | Algebraic Approach | ||||||
Moutaz Khouja [29] | √ | √ | Analytical method | ||||||||
Martin Linde-Rahr [40] | √ | √ | Game theory | ||||||||
Sarkar [41] | √ | √ | Analytical method | ||||||||
Shib Sankar Sana [42] | √ | √ | √ | √ | √ | Analytical method | |||||
Sarkar [43] | √ | √ | √ | √ | √ | Algebraic approach | |||||
Xueli Ma et al. [44] | √ | √ | √ | Algebraic Approach | |||||||
Proposed research | √ | √ | √ | √ | √ | √ | √ | √ | √ | √ | Algebraic approach (SQP) |
Product Type | Tool-Die Cost 1st Stage ($/Machine) | Tool-Die Cost Finishing ($/Machine) | Fixed Production Cost ($/ton) | Fixed Production Cost ($/ton) | Holding ($/ton/Year) |
Sugar (A) | 0.012 | 0.09 | 650 | 550 | 1.1 |
Sugar (B) | 0.012 | 0.085 | 660 | 560 | 1.21 |
Sugar (C) | 0.013 | 0.095 | 665 | 560 | 1.25 |
Product Type | Setup ($/Year) | Raw Material Cost ($/ton) | Production Rate (tons/Machine) | Labor ($/Labor-Year) | Demand (tons/Year) |
Sugar (A) | 8 | 20 | 150 | 1000 | 900 |
Sugar (B) | 8.8 | 23 | 160 | 1000 | 800 |
Sugar (C) | 9.3 | 25 | 170 | 1000 | 800 |
Product Type | Tool-Die Cost ($/Machine) | Fixed Production Cost ($/tons) | Holding ($/tons/Year) |
Sugar (A) | 0.011 | 670 | 1.12 |
Sugar (B) | 0.012 | 670 | 1.23 |
Sugar (C) | 0.013 | 675 | 1.28 |
Product Type | Fixed Inspection ($/Year) | Variable Inspection ($/Unit) | Disposal ($/Unit/Year) |
Sugar (A) | 5 | 0.12 | 0.83 |
Sugar (B) | 5.5 | 0.22 | 0.83 |
Sugar (C) | 6 | 0.28 | 0.83 |
Decision Variable | Algebraic Approach (Constant Production Rate) | Algebraic Approach (Variable Production Rate) | Particle Swarm | Pattern Search | Genetic Algorithm |
---|---|---|---|---|---|
0.015 | 0.015 | 0.016 | 0.016 | 0.0163 | |
0.016 | 0.016 | 0.016 | 0.04 | 0.0080 | |
0.017 | 0.016 | 0.016 | 0.016 | 0.0166 | |
10 | 9 | 9 | 9 | 9 | |
8 | 8 | 8 | 8 | 8 | |
8 | 7 | 7 | 7 | 7 | |
8 | 7 | 7 | 7 | 7 | |
7 | 6 | 6 | 6 | 74 | |
6 | 6 | 6 | 6 | 6 | |
513,890 | 478,491 | 479,045.1 | 479,500.2 | 607,138.3 |
Parameters | Original Value | % Change in Value | New Value | % Effect on |
---|---|---|---|---|
0.01 | −50 | 0.005 | −14.11 | |
−25 | 0.01 | −7.16 | ||
+25 | 0.01 | 7.16 | ||
+50 | 0.02 | 14.52 | ||
610 | −50 | 305.00 | −0.71 | |
−25 | 457.50 | −0.4057 | ||
+25 | 762.50 | 0.40 | ||
+50 | 915.00 | 0.71 | ||
1000 | −50 | 500.00 | −21.2 | |
−25 | 750.00 | −10.6 | ||
+25 | 1250.00 | 10.68 | ||
+50 | 1500.00 | 21.2 | ||
50 | −50 | 25.00 | −3.14 | |
−25 | 37.50 | −1.46 | ||
+25 | 62.50 | 1.312 | ||
+50 | 75.00 | 2.513 | ||
19.5 | −50 | 9.75 | −9.67 | |
−25 | 14.63 | −4.83 | ||
+25 | 24.38 | 4.83 | ||
+50 | 29.25 | 9.67 | ||
0.5 | −50 | 0.25 | −3.8 | |
−25 | 0.38 | −1.92 | ||
+25 | 0.63 | 1.7 | ||
+50 | 0.75 | 3.9 | ||
11 | −50 | 5.50 | −0.5 | |
−25 | 8.25 | −0.265 | ||
+25 | 13.75 | 0.27 | ||
+50 | 16.50 | 0.52 | ||
1.2 | −50 | 0.60 | −4.9 | |
−25 | 0.90 | −2.84 | ||
+25 | 1.50 | 1.663 | ||
+50 | 1.80 | 4.19 |
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Alkahtani, M.; Omair, M.; Khalid, Q.S.; Hussain, G.; Sarkar, B. An Agricultural Products Supply Chain Management to Optimize Resources and Carbon Emission Considering Variable Production Rate: Case of Nonperishable Corps. Processes 2020, 8, 1505. https://doi.org/10.3390/pr8111505
Alkahtani M, Omair M, Khalid QS, Hussain G, Sarkar B. An Agricultural Products Supply Chain Management to Optimize Resources and Carbon Emission Considering Variable Production Rate: Case of Nonperishable Corps. Processes. 2020; 8(11):1505. https://doi.org/10.3390/pr8111505
Chicago/Turabian StyleAlkahtani, Mohammed, Muhammad Omair, Qazi Salman Khalid, Ghulam Hussain, and Biswajit Sarkar. 2020. "An Agricultural Products Supply Chain Management to Optimize Resources and Carbon Emission Considering Variable Production Rate: Case of Nonperishable Corps" Processes 8, no. 11: 1505. https://doi.org/10.3390/pr8111505
APA StyleAlkahtani, M., Omair, M., Khalid, Q. S., Hussain, G., & Sarkar, B. (2020). An Agricultural Products Supply Chain Management to Optimize Resources and Carbon Emission Considering Variable Production Rate: Case of Nonperishable Corps. Processes, 8(11), 1505. https://doi.org/10.3390/pr8111505