An Integrated Production and Distribution Planning Model in Shrimp Agroindustry Supply Chain

Abstract

This study discusses the integration model of production and distribution planning in the shrimp agroindustry supply chain, consisting of four echelons: shrimp suppliers, shrimp agroindustry, logistics provider companies, and buyers. The shrimp agroindustry supply chain is an essential part of the supply chain of processed product food, which transforms raw shrimp into various processed shrimp frozen products. One form of collaboration between supply chain actors is the integration of production and distribution planning activities. A model is developed to determine the flow of goods from each echelon, the number of processed shrimp products in the agroindustry, and the supplies of processed shrimp products. The bi-objective mixed-integer linear programming is proposed to describe the characteristics of the problem to minimize the total supply chain costs and maximize service level. Non-dominated sorting genetic algorithm II (NSGA-II) is designed to solve the shrimp agroindustry supply chain problem. The sample problem from the shrimp agroindustry in East Java, Indonesia, is applied to exhibit an algorithm’s efficiency. The result shows the best solution for the total supply chain is 1.75 trillion, and the service level is 1,502,264.5.