Aggregate Supply Chain Planning for a Coconut Plantation

Abstract

A coconut grower family who used to sell their produce to processing plant is now considering transforming their business by expanding their role in the coconut supply chain from coconut farmer into agriproduct processing because it can prolong consumption age which make to exporting. The farmers' revenues and profits can be increased if they consider expanding their role in the supply chain by being responsible for the trimming and transporting the trimmed coconuts to the exporters. In this paper, we consider a coconut supply chain in which the fresh coconuts are supplied to a central processing plant from multiple coconut plantations. There, the fresh coconuts are trimmed and then transported to the exporters. All of these activities will be responsible by the farmers. The farmer of this coconut supply chain has to make decisions such as the committed export quantity in the export contract which will be signed one year in advance the processing quantity of fresh coconuts, the number of labor for harvest, the number of labor for production process at each stage, and the production schedule through a mathematical model is developed. It considers constraints like the volume and quality of coconut, time limitation and restriction of labor. The results shows the appropriate volume of fresh coconut and the labor rise to the satisfy demand of customer. Consequently, the farmer increase profit in business.