A Mixed-Integer Linear Programming Based Approach to Optimal Design of Marine Shrimp Farming Supply Chain Network

Limpianchob Chaimongkol


Abstract presentation
Marine shrimp farming operations in Southeast Asia need to be improved in efficiency. So, we present an implementation of supply chain network design. This includes production planning, inventory control and distribution planning. The model is based on real farming situations in Thailand. We also develop a mixed-integer linear programming model to design the whole network consisting of suppliers, farm, distribution centers, traders and customers. The computational results are presented to demonstrate the feasibility and optimal operation of a smart marine shrimp farming.

Abstract dissertation
The traditional operation of marine shrimp farming is widely practiced in Southeast Asia. Giant freshwater prawn farming is one of the main types of marine shrimp farming that also still operates traditionally. Many of these farms operate without advanced techniques for production planning, inventory control, and transportation strategic decisions throughout the supply chain network which are among the most important managerial activities in commercial farming. Maintaining product freshness is of vital importance for aquaculture product. Therefore, this dissertation develops a mixed-integer linear programming model for a marine shrimp farming supply chain network design problem. The problem is to plan production and inventory control, and distribution planning in term of tactical (monthly based approach) perspective which to determine the supply chain network configuration to operate the sequence of activities in the network. Moreover, the model is also extended to consider in term of operational (weekly based approach) decision. This extended model seeks to consider the application of product freshness with strongly related to determining the shortest route of transportation. A multi-echelon, multi-facility, and multi-period mathematical model is proposed such that real conditions are considered. In the end, some numerical illustrations are provided to show that the proposed planning models hold a significant potential to increase the total profit surplus of real marine shrimp farming.