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Procurement, Production and Marketing at Supply-Driven Milk and Milk Products Cooperative

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Part of the International Series in Operations Research & Management Science book series (ISOR,volume 212)

Abstract

In this chapter, we formulate and solve a math-programming model for Milk and Milk Products Cooperative (MMPC) – a cooperative organization with its shareholders as milk producing member farmers in India. The joint procurement, production and marketing problem of this supply-driven cooperative is characterized by highly perishable raw material, i.e., milk, exhibiting unmatched peaks of supply and demand seasons in a year. The product portfolio of MMPC consists of both high and low return products, and not all products can be inventoried for long periods without refrigeration. Moreover, MMPC adopts a pricing and inventorying strategy keeping in view the expectations of both its suppliers and consumers. In this regard, it is essential for the cooperative to develop annual plans well before the supply season peaks.

Keywords

  • Output Product
  • Winter Season
  • Summer Season
  • Milk Powder
  • Sales Price

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This chapter is based on one of the chapters of the thesis submitted by the first author at Indian Institute of Management Ahmedabad, India. The author is sincerely grateful to his thesis advisory committee, Dr. Devanath Tirupati, Dr. Pankaj Chandra and Dr. M. S. Sriram, for their guidance in conceptualizing and analyzing the problem context in the thesis originally.

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Fig. 4.1
Fig. 4.2

Notes

  1. 1.

    Data are compiled based on the information provided by the professional database agencies such as Centre for Monitoring Indian Economy Pvt. Ltd. (CMIE) (http://www.cmie.com/), the annual reports of well-known cooperatives in India, and the official reports published on the Indian Dairy Industry (http://www.indiadairy.com).

References

  1. Chandra, P., & Tirupati, D. (2003). Business strategies for managing complex supply chains in large emerging economies: The story of AMUL. Working paper, W.P. NO. 2002-05-06. Indian Institute of Management Ahmedabad.

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  2. Goldberg, R. A., Knoop, C. I., & Sunder, S. R. (1998). Amul and India’s National Dairy Development Board. Harvard Business School Case 9-599-060.

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  3. Heredia, R. (1997). The Amul India Story. New Delhi: Tata-McGraw Hill.

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  4. Murty, K. G. (2009). Optimization for Decision Making: Linear and quadratic Models. International Series in Operations Research & Management Science. New York: Springer.

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  5. Smith, J. D. (2009). The Mahabharata. London: Penguin. (Abridged edition).

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Correspondence to Omkar D. Palsule-Desai .

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Palsule-Desai, O.D., Murty, K.G. (2015). Procurement, Production and Marketing at Supply-Driven Milk and Milk Products Cooperative. In: Murty, K. (eds) Case Studies in Operations Research. International Series in Operations Research & Management Science, vol 212. Springer, New York, NY. https://doi.org/10.1007/978-1-4939-1007-6_4

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