The Supply Chain Network Design A Case Study: Supply Chain Of Dragon Fruit In Binh Thuan Province

Abstract

Dragon fruit is the main export fruit product of the agricultural industry in Vietnam with an export turnover of nearly 1 billion USD on a yearly basis, accounting for about 50% of Vietnam's fresh fruit export. At a present time, dragon fruit is currently grown in most of the provinces and cities in Vietnam territories but thrives into large-scale specialized cultivation areas concentrated in provinces such as Binh Thuan, Tien Giang, and Long An district. Dragon fruit area of these three provinces accounts for 92% of the total planting area and 96% of the total production of Vietnam. Therefore, the supply chain networks of these provinces also have some serious issues. In the case of Binh Thuan province, the planting area is dramatically expanded year by year as well as the Binh Thuan peasants always grow dragon fruit as much as they can without knowing the demand of consumers, and this causes the monthly supply tends to be higher than demand and waste plenty of money for cultivation. In addition to this, on a monthly basis the suppliers always directly ship their products to big traders in order to sell it, however, the transportation routes between suppliers and big traders are very large and devious, so this leads to the significant growth of transportation costs of suppliers. The situation is the same with big traders when they transport their processed dragon fruit to customers, the big number of customers, as well as the long distance between them, is the main reasons causing to increase in transportation cost. Therefore, this thesis will suggest some ideas to resolve the overproduction and the increasing of transportation costs in Binh Thuan province. To be more specific, this report will suggest using Winter Model method, and Mixed Integer Programming to resolve all problems above. Finally, the solution will be solved by CPLEX IBM, and EXCEL Software to gain the optimal solution.