Design and optimization of a soybean supply chain network under uncertainty

Abstract

Demands of foods have been increased in recent years for human and animal nutrition. Food supply chain management has been required to administer series of products and services in efficient ways for agriculture and food production to achieve customer satisfaction at the lowest cost. Agricultural systems have been changed during recent years, and have caused improvements in consumption and production patterns. However, there is not much research on supply chains of seeds (e.g., soybean) which have been produced in Canada. In this research, we propose a mixed-integer linear optimization formulation for a soybean supply chain network. The profit is maximized in the objective function. The mathematical formulation consists of multiple products, growers, potential farm company facilities, potential locations of distributers, and customers. Then, the mathematical model is extended by possibilistic approach to include uncertain parameters. In addition, the results are discussed and analyzed for the soybean supply chain network.