The Bangladesh grain model

Abstract

Determining the “optimal” number, size, location and design of grain storage facilities in a developing country is a complex problem with significant health, social, political, demographic and financial implications. Formulating and “solving” such a problem requires the consideration not only of average measures of demand (e.g. minimum per capita requirements), supply and costs, but of population movements, rationing systems, developments in domestic production due to new methods and fertilizers, severe limitations in foreign currency, the infra-structure of the transportation system, improvements in vermin control and many other factors which are most often of but minor importance in corresponding logistic studies in more developed countries. Furthermore, in comparison to more developed countries, there is a dearth of reasonably detailed and accurate historical data to say nothing of relevant prognoses. The following case study describes how such a nationwide logistics problem was tackled in Bangladesh. Although it leads up to a discussion of a solution procedure based upon the solution of rather large-scale mixed integer programming problems, the article is primarily intended for a target audience of OR practioners, economic planners and decision makers involved in operational planning for developing countries.