A milk collection problem with blending |
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| Institution: | 1. Supply Chain Management & Operations, Catholic University Eichstätt-Ingolstadt, Auf der Schanz 49, Ingolstadt 85049, Germany;2. European Business School, Institute of Supply Chain Management, Burgrstrasse 5, 65375 Oestrich-Winkel, Germany;1. NEOMA Business School, 1 Rue du Maréchal Juin, Mont-Saint-Aignan Cedex 76825, France;2. CORE - Center for Operations Research and Econometrics, Université catholique de Louvain, Voie du Roman Pays 34, Louvain-la-Neuve 1348, Belgium |
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| Abstract: | A milk collection problem with blending is introduced. A firm collects milk from farms, and each farm produces one out of three possible qualities of milk. The revenue increases with quality, and there is a minimum requirement at the plant for each quality. Different qualities of milk can be blended in the trucks, reducing revenues, but also transportation costs, resulting in higher profit. A mixed integer-programming model, a new cut, and a branch-and-cut algorithm are proposed to solve medium-sized instances. A three-stage heuristic is designed for large instances. Computational experience for test instances and a large-sized real case is presented. |
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| Keywords: | Routing Milk collection Different qualities of milk |
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