Procurement, Production and Marketing at Supply-Driven Milk and Milk Products Cooperative
01 Jan 2015-pp 61-81
TL;DR: In this paper, the authors formulated and solved a mathematical programming model for a milk and milk products cooperative (MMPC) in India, which is a cooperative organization with its shareholders as milk producing member farmers in India.
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.
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TL;DR: A noncooperative game theoretic model is developed to examine network performance and stability related implications of allocation mechanisms that endogenously balance equity vis-à-vis equality and hence, the degree of collusion among the network firms in a decentralized setting and demonstrates that inefficiencies and instability of decentralization can be eliminated by incorporating an additional degree of freedom in the network formation game.
Abstract: We develop a noncooperative game theoretic model to examine network performance and stability related implications of allocation mechanisms that endogenously balance equity vis-a-vis equality, and hence, the degree of collusion among the network firms in a decentralized setting. We obtain the structural results and bounds for our model parameters in this regard by focusing on two important factors: (i) synergy between the firms, and (ii) the number of network firms. Our contribution to the existing literature is threefold in showing that: (i) perfect equality among the network firms can be suboptimal, (ii) explicit cooperation among the firms is not always necessary for the efficient network performance, and (iii) the network firms do not completely collude, and yet, network stability can be enhanced. By particularly modeling a two-tier network, we exhibit our results in a decentralized setting and highlight the role of a coordinating agent in enhancing competitiveness of the network firms. We demonstrate that inefficiencies and instability of decentralization can be eliminated by incorporating an additional degree of freedom in the network formation game. Our model and the structural results are applicable to networks such as producers’ cooperatives, cartels, exclusive production facilities, industrial clusters, joint production and research facilities, etc., wherein the conflicts of equity–equality and degree of collusion are predominant.
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Cites background from "Procurement, Production and Marketi..."
...…and medium-term operating decisions—such as production planning, inventorying, pricing, sales and marketing, etc.—to the coordinator (see, e.g., Palsule-Desai and Murty 2015), we consider that the network membership related decisions are announced by the firms before the inequality fraction…...
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Book•
10 Dec 2009
TL;DR: A brief historical overview of linear programming can be found in this article, with a brief history and a brief overview of the main techniques involved in the development of linear programs. But the main focus of this paper is on the transformation of variables.
Abstract: Linear Equations, Inequalities, Linear Programming: A Brief Historical Overview.- Formulation Techniques Involving Transformations of Variables.- Intelligent Modeling Essential to Get Good Results.- Polyhedral Geometry.- Duality Theory and Optimality Conditions for LPs.- Revised Simplex Variants of the Primal and Dual Simplex Methods and Sensitivity Analysis.- Interior Point Methods for LP.- Sphere Methods for LP.- Quadratic Programming Models.
32 citations