Optimizing the pork supply chain: A model integrating feed production and pig farming with outsourcing and subcontracting costs
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Abstract
This study introduces a mathematical model designed to optimize the vertically integrated pork supply chain by addressing key cost factors, including pig farming, feed production, and outsourcing. The model integrates pig fattening and feed production stages, incorporating essential cost components to synchronize farming schedules with feed production plans while minimizing total costs. Computational experiments, using data from an empirical study of Thailand's vertically integrated pork supply chain, were conducted to evaluate the model's efficiency and sensitivity under varying farm sizes and planning horizons. The results demonstrate that the model effectively identifies optimal solutions for shorter planning periods (up to 14 months). However, extended planning horizons and larger farm sizes significantly affect solution times and the quality of feasible solutions. These findings provide valuable insights and practical strategies for pork production companies seeking to enhance cost efficiency and improve supply chain sustainability. Future research should focus on developing advanced heuristics and exploring additional supply chain dynamics within integrated environments.
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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