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INFORMS 2009: San Diego, USA
October 13, 2009
Problems Analysis and Truck Allocation in
Sugarcane Transportation to Sugar Mill
Case Study: Sugar Mills in the Eastern Thailand
Jirawan Niemsakul
Sripatum University Chonburi Campus
Chonburi, Thailand, 20000
[email protected]
Content
 Introduction
 Description of problems
 Transportation strategies
 A mathematical model
 A case study of a sugar mill
Introduction
The major income of Thailand
is from agriculture
Thailand exported sugar
more 1,000 millions dollars
and produced sugarcane
67,197,817 tons
Eastern Thailand produced
sugarcane about 4,641,118.54
tons in 2007/08
Inbounds logistics
Raw material
(cane)
Transportation
(Truck)
Queuing system
FIFO
Quota area
Extended area
Owned by
farmer
Rented truck
Owned by
mill
Locked queue
FIFO
+Locked dump
(fresh cane)
FIFO
+Locked dump
(extended area)
Description of Problems
Description of Problems
Amount (Ton)
Supply over demand
2
3
1
Mill Capacity
18,000
Supply less than demand
Dec.
Jan.
Feb.
Mar.
Apr.
May
Time (Month)
Transportation strategies
 Database management
 Transport center
 Planting
 Clustering
 Truck allocation
 Truck energy system
 Routing
 Technology
Mathematical Model
Decision Variables
Xijk = Sugarcane supply delivered by owned truck i of
area j, period k
Ymjk = Sugarcane supply delivered by rental truck m of
area j, period k
TXijk = Number of transportation times of owned truck i
of area j, period k
TYmjk = Number of transportation times of rental truck i
of area j, period k
Mathematical Model
Objective Function
Minimize total transportation cost
 Fuel cost
 Driver cost
 Transport service cost
 Maintenance cost
 Losing cost
Mathematical Model
I
J
K
 C
Fuel cost
i 1 j 1 k 1
I
J
ijk
K
 D
Driver cost
ij
i 1 j 1 k 1
M
Transport service cost
J
mjk
m 1 j 1 k 1
Losing cost
i 1 j 1 k 1
J
K
 LO
ijk
i
j
k
Ymjk
K
 M
Maintenance cost
I
J
X ijk
K
W
I
X ijk
ij
X ijk
M
J
K
m
j
k
X ijk   LRmjk Ymjk
Mathematical Model
Constraints
 Mill capacity
 Sugarcane supply
 Quota contract of truck
 The used priority weight of truck using
 Limited transportation times of
truck per period
 Balancing between transportation
times and sugarcane supply per period
A Case Study of Sugar Mill
Sugarcane truck allocation for 2 areas in 60 periods
(baht)
Current System
Proposed
Fuel cost
5,047,246
6,438,322
Driver cost
3,564,000
7,128,000
Transport service cost
2,904,000
1,770,000
Maintenance cost
6,334,416
6,334,416
Loosing cost
25,024,680
18,784,420
Total
42,874,342
40,455,160
Total transportation cost can be decreased 5.64%
A Case Study of Sugar Mill
Area
Current System
Owned truck Rental truck
1
148
2
50
16 (all)
6
Proposed
Owned truck
148
50
Rental truck
16 (some periods)
0
Number of trucks in queuing system can be
decreased 2.73%