An optimal approach for supply and demand management with the consideration of cattle herd structure management: A case study of medium-size dairy cooperative in Thailand

Sarttra, Thana; Kittitanasak, Kanokporn; Wongwaitayakul, Kasem; Phaophu, Chanyanut; Kiatcharoenpol, Tossapol

doi:10.1016/j.cie.2023.109355

An optimal approach for supply and demand management with the consideration of cattle herd structure management: A case study of medium-size dairy cooperative in Thailand

Author(s)

Sarttra, Thana

Kittitanasak, Kanokporn

Wongwaitayakul, Kasem

Phaophu, Chanyanut

Kiatcharoenpol, Tossapol

Date Issued

August 1, 2023

Type

Article

DOI

10.1016/j.cie.2023.109355

Abstract

Thailand is one of the countries with the economy depends primarily on an agriculture sector. As a result of the government campaign, the country's milk consumption has been continually increasing. Cow milk is produced by farmers of private organizations and dairy cooperatives. A medium-sized dairy cooperative with only a pasteurization plant is in the interest of this study, with the majority of farmer members being smallholders. According to the preliminary study, one of the primary issues is a lack of systematic management of the total cattle herd structure, which results in either an overabundance or a shortage of milk. This research proposes a novel way to supply management that is responsive to the demand for products at any given time, as well as a simplified herd structure management, by resolving the problem in a medium-sized dairy cooperative in Thailand using Mixed Integer Linear Programming (MILP). Based on historical cooperative data and secondary technical farming data, the experimental results of Lingo19 demonstrated that a focused dairy cooperative can increase its total profit and improve the systematic relationship between supply and demand by maintaining the optimal cooperative herd structure.

Citation

Computers and Industrial Engineering, 182, 2023