A Two-stage Stochastic Programming Model for Districting and Transportation Lot-size of Sugarcane

The transporting sugarcane from cane fields to a mill factory is a potential cost in sugarcane logistics. The poorly operating vehicle (six-wheel truck) services and transportation lot size results in lost or excess of cane supplied. In this paper, we consider the integrated districting problem of whole cane field region and transportation lot size of each cane field. We formulate the combining two problems as two-stage stochastic model. The sugarcane yield in harvesting season is a random variable with known discrete distribution. The first stage, we determine the districts for each cane field zone. After, the harvesting sugarcane realized the second stage we make decision for transportation lot size. We formulate the transportation lot size as mixed integer programming model under a finite horizon during harvesting season of sugarcane. The optimal approach is based on the scenariobased method. The objective is to minimize the expected overall cost integrated two stages. We investigate the model based on generating data. Numerical results indicate that the model provides different optimal solution based on scenarios. Keywords—Sugarcane; Districting problem; Lot sizing problem; Two – stage stochastic programming model