Supply Chain Optimization for Farmer-Bepari System of Agricultural Products in Bangladesh

Abstract

This study, for the Farmer-Bepari system of agricultural products in Bangladesh, can be formulated as a mixed integer linear programming (MILP) model. Further, it will be investigated that the significant impact of profit the attributes such as labour cost, fertilizer cost, the raw material cost of different firms and also to estimate the product distribution in different locations. To solve this MILP model, with the help of a branch and bound algorithm by using A Mathematical Programming Language (AMPL). To investigate the model we have to collect data from seven locations of three districts in Bangladesh. Also, a numerical example presented this study, which objectives illustrate the models. From the sensitivity of the production, if the raw material cost, labour cost and fertilizer cost increase is about 5%, then decrease the profit by MILP model have 0.004%, 1.6% and 1.2% respectively. Labour cost is a significant factor in profit, which changes the profit more than the raw material cost and fertilizer cost of the product. The results are helping decision-makers to identify the desired agricultural production and distribution structure optimization strategy.