Supply Chain Planning Optimization in the Fruit Industry

This paper presents a midterm tactical planning model for the supply chain of a typical large company operating in the High Valley of the Black and Neuquén Rivers area of Argentina. A Mixed Integer Lineal Programming model has been developed, which maximizes the net profit of the company along a one-year time horizon divided in twelve monthly periods. Based on customer orders from three major markets, estimated fruit production, economic information about costs and prices, and yield and availability of processing plants, the model optimally allocates plant operation levels, amount and place where raw material should be obtained and a monthly plan for fruit cold storage and final product delivery. The model has about 14300 continuous variables and 3300 discrete variables. Results are presented for an one year optimal operation of a typical company in the region under study.