Single Criterion Supply Chain Management in Olive Oil Industry

In this work we consider the supply chain management in olive oil industry. We construct the mixed-integer programming model connecting the optimization of olives harvesting and storage and olive oil production. The goal is to maximize the olive oil producer profit consisting of revenue, production cost and storage cost. In the same time, we have to take into the consideration the farmers’ (suppliers’) utility too. Namely, the suppliers want to maintain the harvest delay and delivery cost as minimal as possible. In the case of single criterion optimization problem we suppose that the producer is taking care of all five goals, so the objective function consists of the producer’s revenue, storage cost, production cost, harvest delay and delivery cost with the appropriate sign. Due to the big dimension of the problem two heuristics are proposed for solving it. Some simulations are performed and the results show good heuristics behavior.