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Icores 2016 5 PDF
Icores 2016 5 PDF
Abstract: Processing plants are central for the operation of fruit supply chains. One of the main aspects to consider is
fruit transportation to the processing plant. Hence, this work proposes a mixed integer linear programming
model to support the fruit transport planning from the storage facilities to the processing plant. The aim of
the model is to minimize the daily transportation costs and associated costs of different storage facilities
from where fruits are supplied to the plant in order to meet the demand. The model considers plant
processing capacity, fruit demand, number and type of trucks available and the inventory of fruit in each
type of storage facilities. The model was applied to a real case study of a processing plant located in the
O'Higgins Region (Chile), where reported savings only in transport costs reached about 23 percent.
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Soto-Silva, W., González-Araya, M., Pla-Aragones, L. and Nadal-Roig, E.
Transport Planning in Processing Plants for the Fruit Industry.
DOI: 10.5220/0005646100710078
In Proceedings of 5th the International Conference on Operations Research and Enterprise Systems (ICORES 2016), pages 71-78
ISBN: 978-989-758-171-7
Copyright
c 2016 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
ICORES 2016 - 5th International Conference on Operations Research and Enterprise Systems
developed. In a related research, Blackburn and establishing fruit transportation planning is carried
Scudder (2009) presented a mathematical model to out. In section 5 are presented the conclusions as
determine the loss in value of perishable agricultural well as further research.
products depending on the type of storage. This
research corroborated that cold storages allow fruit
industry for a better fruit quality during postharvest. 2 FRUIT STORAGE AND
In the literature, there are also optimization
models to support decisions in distribution and TRANSPORT TO PROCESSING
transportation for supply chains of perishable and PLANTS
non-perishable agricultural products. For instance,
Mula et al. (2006) and Mula et al. (2010) presented The planning and coordination of different agents
reviews of the different optimization models applied involved in production, processing, storage and
to transportation planning in supply chains. More distribution are unavoidable tasks in a fruit supply
recently, Nadal-Roig and Plà (2015) proposed a chain. In the network of fruit supply chains, each
linear programming model that minimizes the stakeholders transport the fruit downstream to the
associated costs to transport from cooperatives to a next level in the chain. The activities developed at
fruit logistic center. The model scheduled the daily each level are briefly described below.
transport routes in order to satisfy the demand of the Harvesting is done by producers who are
logistic center, at a minimal cost. Furthermore, the generally the farms’ owners. Crops are collected
authors emphasized another complex task in fruit using containers, which are transported from the
supply chain like the planning and coordination of farm to the storage facilities (cold storages), or
different agents involved in production, processing, directly to the process plant. Note that the plant is
storage and distribution. responsible for assigning the fruit destination. Each
Thus, it seems from literature that managing fruit plant purchases the fruits and takes care of his
storages of different types and the coordination of a retirement from the orchards.
fruit supply chain requires a sound transport The storage time depends on the fruit and
planning. Currently, optimization models to decision variety. For example, apples and pears, depending
support for daily transportation planning from on the variety, may be stored for up to 9 months. On
warehouses or storage centers, with different types the contrary, cherries are not stored. They must be
of cold storages, to the processing plants has not processed the same day they are harvested.
been yet proposed. Even less, there are such However, for all stored fruit, the cooling system
optimization models used in practice to the must be considered to control the ripening process of
knowledge of authors. Surprisingly, transportation these (Nadal-Roig and Plà, 2015).
models for nearby industries of the primary sector Processing is performed in processing plants
like forestry (Weintraub et al., 1996) or sugar with a different degree of complexity. The simplest
industry (Lopez-Milan and Plà-Aragonés, 2014) process is exhibited in packing plants where fruit is
have been developed successfully, but not to the intended for fresh consumption. Minimal processing
fruit industry (Oliva, 2011). So that, to cover this is gaining popularity as a way to diversify the
gap in this paper, a mixed integer linear production offered to the market.
programming model to find the optimal transport Retailing varies depending on product quality,
planning from warehouses with different cooling added value and amount sent to the market.
technologies to a fruit processing plant is proposed. Although the usual way is that retailing firms place
The model minimizes the total cost associated with orders to processing plants and distribute the fruit
transport and proposes the opening of the cold among consumers, it is also common for small and
storage facilities grouped in warehouses. Finally, local production the access to the market from
we applied the model to a real case study in a storage facilities hold by producers.
processing plant of Japanese plums and canned In general, the fresh fruit arrives to processing
peaches. plants from different cold storage facilities,
Therefore, this paper is structured as follows. In according to the plants and retail demands. So, an
section 2, the description of the problem of transport important issue for managers is to decide which and
and storage in Chile is presented. In section 3, the when a cold storage facility must be opened in order
proposed mathematical model for transportation to pick the fruit up for satisfying the demands. This
planning in the fruit industry is presented. In section decision depends on the stored fruit and technology
4, a case study obtained from a Chilean company for of the cold storage facilities.
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Transport Planning in Processing Plants for the Fruit Industry
The structure of the fruit supply chain can have quantities, because of unforeseen changes in demand
different configurations, but the basic elements or in order priorities. Moreover for the fruit
inherent in the stakeholders remain the same transportation, a fleet of trucks is rent and the
(Verdouw et al., 2010). For example, at the bottom payment thereof is made according to the number of
of the fruit supply chain in Chile are the farmers, daily trips made. On the other hand, the availability
who sell their products to processing plants. The of a fixed number of trucks is necessary to ensure a
processing plants either store the fruit in storage minimum and maximum number of daily (Oliva,
centers (which are owned or rented) or process the 2011).
fruit immediately in the plant. This approach is
different from other countries like Spain, where
farmers usually are grouped in cooperatives owning 3 MODEL FOR PLANNING THE
storages centers supplying to the processing plants.
In this case, there is not a change of ownership for DAILY TRANSPORTATION
the fruit, because these stages are managed by a STORAGE FACILITIES TO
cooperative of producers integrated in a sole THE PROCESSING PLANTS
company.
Different types of cold storage facility are The formulation of the proposed model for planning
available, and these are: the Conventional Cold the daily transport from the storage facilities to
technology storage facility (CC), where the
processing plants model is presented. The indices,
temperature control is performed by a thermostat,
parameters and decision variables of the model can
thereby maintaining the fruit for a period
be found in the Appendix.
approximately of 3 months; The Smart Fresh
technology storage facility (SF), which has a built-
diffusion system phytoregulator for protecting the Mathematical formulation
fruit from the effects of ethylene during storage,
allowing the fruit to maintain a period approximately
of 6 months; and Controlled Atmosphere technology
storage facility (CA), where the concentrations of
oxygen, carbon dioxide and nitrogen are controlled (1)
as well as the temperature and humidity. That is, the
atmosphere in the storage facility is controlled,
thereby maintaining the fruit for a period
approximately of 9 months. Generally, plants have
more storage, in order to have fruit for processing
throughout the year. There is also possible some s.t
changes between types of storages. For instance, the ∀ , .
transformation of a conventional cold storage (2)
facility into a Smart Fresh depends on the demand
and need for each company according to their
estimated time of fruit supply. (3)
In Chile, in each cold storage facility is only ∀ , , .
possible to store one type of fruit at a time (Oliva,
2011). According to the Center for Natural Resource ∀ (4)
Information (CIREN, 2005), in 2004, Chile had
approximately 201 agro-companies and 2,349 cold
storage facilities. ∀ , . (5)
Quite often, the fruit transportation from
warehouses is coordinated by processing plants to ∀ .
satisfy subsequently the orders they receive at the (6)
same time from retailers. This transport must be
planned according to the availability of trucks and / ∀ . (7)
or drivers (Hsiao et al., 2010), in order to meet the
demand of different varieties. Also, it is important to
consider daily variations of processed fruit
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ICORES 2016 - 5th International Conference on Operations Research and Enterprise Systems
74
Transport Planning in Processing Plants for the Fruit Industry
Table 3: Scheduled trips from the warehouses to processing for each analyzed day.
Day 0 Day 30 Day 90
Truck Truck Truck
From #1 #2 #3 #4 #1 #2 #3 #4 #1 #2 #3 #4
W1 0 1 1 0 1 1 0 0 0 1 0 0
W4 2 0 0 0 2 0 0 0 2 0 0 0
W5 0 0 0 1 0 0 1 1 0 0 0 1
W6 2 0 0 0 0 0 0 0 0 0 1 0
# Trips 4 1 1 1 3 1 1 1 2 1 1 1
Tons 41.6 12.8 26.4 23.2 31.2 11.6 14.8 26.4 20.8 12.8 26.0 26.4
the analysis of the case study. These instances varieties were required on other days during
correspond to the production planning of the planning.
processing plant in three different days. The first The number of trips by trucks and the
instance is the starting day of the processing fruit warehouses which trucks should be directed are
period, day 0, where all the stock is available. For presented in Table 3.
the second instance, we consider the data of the day As it is seen in Table 3, a total of 7, 6 and 5 trips
30th after the beginning of operations at the plant. At to the processing plant are required at day 0, 30 and
this time, the stock of stored fruit has decreased a 90 respectively. Considering the three instances, the
25%. The third instance is the day 90th after the truck #1 (truck type 1) is always performing most of
beginning of operations at the plant. At this time, the trips representing the 40%, 37% and 24% of the
fruit available in cold storage has decreased a 59% total number of tons transported at day 0, 30 and 90
compared to the beginning of the season. respectively. The results concerning to the number
In Table 2, the demands of the plant for each of fruit tons to be transported from different
fruit varieties are presented in each of the proposed warehouses to the processing plant in each truck are
instances (analyzed days). presented in Table 4.
As it is seen in Table 2, the first instance (day 0) As it is seen in Table 4, 104.0 t are transported
has a demand of 104 t, and 6 varieties of fruit are from the storage facilities to the processing plant at
claimed. In the second instance (day 30) the demand day 0, satisfying the demand of each of the varieties.
is 84 t, where five types of fruit are demanded, and The model aims to use the fruit for those storage
in the third instance (day 90) has a demand of 86 t, facilities whose are Conventional Cold type (CC),
with a demand of 7 varieties of fruit. opening 5 cold storage facilities of this type,
Note that in all three scenarios some of the followed by the opening of Smart Fresh (SF) 3
varieties of fruit were not shipped, because in the storage facilities, and finally, gives 1 controlled
days analyzed were not required. However, these atmosphere (CA) storage facilities, just to minimize
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ICORES 2016 - 5th International Conference on Operations Research and Enterprise Systems
the fixed costs of opening of different types of cold opening of the storage facilities depending on the
storage facilities. The opening of the CA storage type presented technology associated with the
facilities is influenced because the demand for the cooling of each of them. The processing plant makes
variety of fruit could not be satisfied with that was both its own and leased storage to have fruit
stored in the standard CC and SF storage facilities. throughout the season progresses and thereby meets
In relation to transport costs and fixed opening costs demand.
of cold storage, in Table 5 the results for the three For the Chilean case, it is important to segment
instances studied are presented. the cold storage facilities according the cool
technology, since a plan about what cold storage
Table 5: Transportation costs and opening fixed costs of facilities will be opened first for the season, in order
cold storage facilities (in $USD*). to ensure the quality of the fruit that is sent to
Transportation Storage facility Total
process is needed. The mathematical formulation
costs opening fixed cost presented by Nadal-Roig and Plà (2015) is the basis
Day 0 317 91 408 for the extension developed in this paper where
Day 30 244 93 337 various processing plants and different types of
Day 90 285 104 389 storing facilities are considered.
* 1 USD = 555.15 CLP, exchange rate in February 21st of 2014 As the model is intended for practical use, the
(www.bcentral.cl). computational performance of the model is analyzed
under two scenarios in which the amount of storage
Note that the instances (days 0, 30 and 90) are
centers, trucks fleet, demand, availability of fruit in
real cases in the processing plant, so that the demand
cold storage and quantity of plants vary, obtaining
and stocks at the beginning of the day are real for the
the optimal solution in both cases. For the smaller
company.
scenario (6 warehouses, 62 cold storage facilities
Comparing the cost of transportation plans
with 10 million kilos of stored fruit and a processing
derived from the optimal solution of each instance
plant), the model provided the optimal solution after
versus actual planning that took place at each
10 seconds, while for the scenario where the
studied day in the company, the first instance
parameters mentioned increased twice, the optimal
reported savings of 22%, in the second scenario
solution was reached in 3600 seconds. This shows
savings of 26% and in the third scenario 20% saving
that for the more complex cases that could be
respectively representing an average savings of 23%
expected in the Chilean fruit industry, it would be
during the season.
possible to deliver an optimal solution in a
reasonable computational time.
Finally, the model is applied to a real case of a
5 CONCLUSIONS fruit processing plant in the O'Higgins Region,
Chile, which has 62 cold storage facilities, grouped
In this research, a mathematical optimization model into 6 warehouses. The company processes varieties
with the aim to plan the daily transport from the of peaches and plums, having a total of 15 varieties.
storage centers in the fruit processing plant, Each season holds approximately 10 million kilos of
minimizing the costs associated with transport is fruit. The model, when applied to three days
presented. The model also performs an optimal observed in the 2013 season, achieved cost savings
76
Transport Planning in Processing Plants for the Fruit Industry
average transport of about 23 percent relative to the Omta, S.W.F. (2010) A classification of logistic
value observed transport cost. Regarding the outsourcing levels and their impact on service
reduction in the costs of opening cold storage, it has performance: Evidence from the food processing
been possible to demonstrate the solution delivered industry. International Journal of Production
Economics. 124. p.75-86.
by the model is consistent with the priority Lopez-Milan, E. & Plà-Aragonés, L.M. (2014) An
established in practice for opening storage facilities. Operational Computerised System to Manage the
Future extensions of the model are exploring to Supply Chain of Sugar Cane. Annals of Operations
incorporate the temporary nature in the transport Research. 219. p.285-297.
planning, i.e. including tactical decisions like the Lucas M, Chhajed D (2004) Applications of location
transportation planning for the entire season. Hence, analysis in agriculture: a survey. J. Oper. Res. Soc. 55:
the optimal size of the fleet could be assessed. This 561–578.
research would require good estimates of both truck Mchugh A, Senesi R (2000) Apple Wraps: A Novel
type’s characteristics and the demand for each Method to Improve the Quality and Extend the Shelf
Life of Fresh-cut Apples. Journal Food. Sci. 65(3):
variety of fruit to be processed in a season. 480–485.
Finally, it would be interesting to integrate this Mula J, Poler R, Garcıa-Sabater J, Lario F (2006) Models
model into existing mathematical models that for production planning under uncertainty: A review.
consider operations in the orchards or the filling of Int. J. Prod. Econ. 103: 271–285.
different types of cold storage, depending on the Mula J, Peidro DD, Vicens E (2010) Mathematical
quality of harvested fruit. programming models for supply chain production and
transport planning. Eur. J. Oper. Res. 204:377-390.
Nadal-Roig E, Plà L (2015) Optimal transport planning for
the supply to a fruit logistic center. In: Plà-Aragonés,
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survey. Operations Research. 35 (5). p.64-665.
Hsiao, H.I., Kemp, R.G.M., van der Vorst, J.G.A.J. & Sets, parameters and variables used in the
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ICORES 2016 - 5th International Conference on Operations Research and Enterprise Systems
formulation
The sets used by the model are the following:
P: Processing plants set.
F: Varieties of fruit stored in different storage
facilities available for the storage of products.
V: Set of trucks available.
I: Set of storages available for the fruit
Cif: Set of Conventional Cold storage facilities in the
storage i
Cis: Set of ‘Smart Fresh’ storage facilities in the
storage i
Cia: Set of Controlled Atmosphere in the storage i.
Ci: Cif U Cis U Cia : Set of storage facilities in the
storage i
The parameters considered by the model are the
following:
Dfp: Fuit demand f, fF, from the processing plant p,
p P.
Av: Maximum capacity for the truck v, vV.
TTivp: Travel time that warehouse i, i I, with the
truck v, v V, with destination to the processing
plant p, p P.
Hv: Maximum number of hours of driving for the
truck v, vV.
Mv: Maximum number of trip for the truck v, vV.
Rv: Minimum number of trip for the truck v, vV.
Wf: Opening fixed cost for the storage facilities type
f (Type CC: Conventional cold).
Ws: Opening fixed cost for the storage facilities type
s (Type SF: Smart Fresh).
Wa: Opening fixed cost for the storage facility type a
(Type CA: Controlled atmosphere).
Civp: Transportation cost from the warehouse i, i I,
with the truck v, v V, with destination to the
processing plant p, p P.
N: Number of trucks allowed removing fruit to the
warehouses
Sicv: Stock available in the storage i, and storage
facility c, c Ci, of the fruit f, fF.
The decision variables of the model are the
following:
Xicvfp : kg transported from the storage i, from the
storage facility c, c Ci, and fruit type v, vV,
and truck f, fF, with destination to the
processing plant p, p P.
Yivp= Number of trips from the storage i done by the
truck v,v V, to the processing plant p, p P.
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