EURO 2024 Copenhagen
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4150. Resilient Olive-Oil Supply Chain Network Design

Invited abstract in session MD-12: OR in Agriculture, stream OR in Agriculture and Forestry .

Monday, 14:30-16:00
Room: 13 (building: 116)

Authors (first author is the speaker)

1. Bilge Bilgen
Industrial Engineering, Dokuz Eylul University

Abstract

This paper addresses the integrated planning problem encompassing olive harvest and production within the olive oil industry. The aim is to optimize a mathematical model that seamlessly integrates both olive harvest and olive oil production processes. The primary goal is to maximize overall profit by determining the quantities of olives harvested from various groves, olives procured from external farmers, olive oil produced, and managing by-products to mitigate the adverse impacts of olive oil production. The problem is formulated as a mixed integer linear programming model (MILP). Profit maximization comprises total sales revenue and total costs, covering harvesting, procurement, fixed and variable processing expenses. System constraints include harvest and production planning, capacity limitations, and processing restrictions. The proposed MILP model encompasses several distinctive aspects of the problem, such as olive ripeness, olive oil quality, farming methods (organic and conventional). Backup facility assignment and coverage distance resilience strategies are incorporated. The effectiveness of the developed model is validated through a numerical experiment based on a real-world case study, indicating that simultaneous consideration of harvesting and production processes significantly enhances the profitability of the olive oil supply chain.

Keywords

Status: accepted

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