A decision support tool for the vegetable processing industry; An integrative approach of market, industry and agriculture

Abstract

In agribusiness many decisions are made under uncertain conditions. Effective and efficient planning can only partially deal with this uncertainty. The vegetable processing industry is a representative example of uncertain conditions and the need for planning. For this industry three components are important: market, industry and agriculture. This paper considers these components as part of a logistical chain. A constant, smooth and predictable flow through this chain is desirable. However, each of these components has a different cyclical pattern. On a tactical level this smoothing is achieved by proper operational sowing, tactical harvesting and tactical processing plans. The construction of these plans is a time consuming and difficult process because they have to be consistent with each other. Thus an integrative approach is necessary to ensure a smooth product flow through the logistic components. A Linear Goal Programming Model is described which ensures that this consistency is achieved and that new plans are rapidly generated. A trade-off is made between meeting demand, utilization of available cultivation capacity, utilization of available processing capacity and sowing costs. The determination of the relative importance of the different goals remains a management decision, but once determined the OR-model can be used as an efficient decision support tool.