Supply Chain Network Optimization A Case Study Of Ttc Sugar

Abstract

TTC is one of the largest sugar producers in Vietnam, it already owns the complete value chain of the sugar industry and TTC is also a company with a strong influence on the entire sugar market in Vietnam. However, the company is currently struggling to strategically plan both its value chain and its supply chain. So, we have developed a method using mathematical models so that the company can plan the operation for the whole supply chain of TTC. Our mathematical model can plan in detail to each component of the supply chain such as farmer, crushing factory, refined factory. In addition, the mathematical model also plans production plans, transportation plans, inventory plans and costs in each plan. The constraints of the mathematical model are built on the actual situation of the company. The results could give the company $355 billion a year, or about $30 billion a month, meaning it could cut its current total costs by nearly 17 percent. In addition, we also run an analysis of the mathematical model and notice that when demand increases by 10%, the total cost will increase by about 2%. Finally, based on the model, we also propose to increase the limit of raw sugar purchasing from Thailand from 10000 tons / month to 14000 tons / month to save an additional 500 tr / year.