Integrating a shrimp-growth function, farming skills information, and a supply allocation algorithm to manage the shrimp supply chain

Authors:
Supachai Pathumnakul;Kullapapruk Piewthongngam;Sakda Khamjan
Affiliations:
Department of Industrial Engineering, Faculty of Engineering, Khon Kaen University, Khon Kaen 40002, Thailand;E-san Center for Business and Economic Research, Faculty of Management Sciences, Khon Kaen University, Khon Kaen 40002, Thailand;Faculty of Science and Engineering, Kasetsart University Chalermphrakiat Sakonnakhon Province Campus, Sakhonnakhon 47000, Thailand
Venue:
Computers and Electronics in Agriculture
Year:
2009

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Abstract

This study examines the coordination problem in the Thai shrimp supply chain. Farming skills and demand seasonality play a crucial role in the chain inventory problem. The proposed purchasing allocation framework consists of a shrimp-growth model, database management and a supply allocation algorithm. The objective of the framework is to minimize overall inventory costs of the chain. Scenario analysis is used to demonstrate the application of the framework. The results show that different efficient plans are appropriate for different scenarios. Hence, establishing a precise plan will potentially reduce inventory cost. The supply allocation decision without a systematic plan would raise inventory cost and would lead to the production of excess shrimp of undesirable sizes. A strong coordination among all members in the chain will benefit all parties and better serve the customers.