Integrated network design of wheat supply chain: A real case of Iran

• Published in: Computers and electronics in agriculture 2017-08, Vol.140, p.139-147
• Main Authors: Gholamian, Mohammad Reza, Taghanzadeh, Abdul Hakim
• Format: Article
• Language: English
• Subjects: Agriculture; Component and supplier management; Cost analysis; Decisions; Grain silos; Network design; Sensitivity analysis; Supplier selection; Supply chain network design; Supply chains; Transportation; Wheat
• ISSN: 0168-1699; 1872-7107
• DOI: 10.1016/j.compag.2017.05.038

•Wheat supply chain considering import, domestic production and export.•Considering blending, locating new silos and transportation modes in the model.•The results illustrate the significant reduction in transportation costs. This study proposes designing the integrated supply chain of wheat products that includes long-term decisions of supplier selection and locating new silos and mid-term decisions of assignment and distribution of the wheat and its products. The proposed model aims at selecting the suppliers, determining amount of the import, distribution of wheat, and production of its products. The model is developed by considering blending of different types of the wheat for producing different products, locating new silos and different modes of transportation in all levels of the chain, and also adding the export sector. Unlike the most of previous researches, the current research proposes an integrated planning model that is able to consider all effective levels and factors on the chain. The application of this model is surveyed in a case study for Iran that demonstrates considerable cost savings. By solving the model, the results illustrate the significant reduction in transportation costs. Meanwhile, the sensitivity analysis has been performed on changing of the most important parameter values of the model to show the effect of them on objective function. Finally, practical suggestions from the output results are brought in conclusion.