Supply Chain Management of Tomato Paste in Northern Khorasan Province

Subject Areas : Agricultural Economics Research

E. مجرد ¹ , M. سالار پور ² , M. صبوحی ³

1 - دانشجوی دکتری اقتصاد کشاورزی دانشگاه زابل
2 - دانشیار اقتصاد کشاورزی دانشگاه زابل
3 - دانشیار اقتصاد کشاورزی دانشگاه زابل

Received: 2014-05-13 Accepted : 2014-05-13 Published : 2014-02-20

Keywords: Supply chain, uncertainty, multistage stochastic linear programming,

Abstract :

Increasing food production networks and the diversity of producers and various methods of food supply and existence of various uncertainties such as uncertainty of inputs supply, market demand and prices have brought about complexity in supply chain management for processed food. Present study aims to investigate production planning problems for tomato processing industry in northern Khorasan. To describe the supply chain of industry and present a model for uncertain tomato supply, multistage stochastic linear programming model and decomposition algorithm were used to determine optimal sale policy. Therefore, optimal levels of production, sale and inventory levels were determined at different periods of production. Based on findings of the study, it is recommended that managers in the industry should pay more attention to supply uncertainty of the primary inputs in production planning to avoid decreasing sales and their shares in the market.