Coordination and Supply Chain Optimization of Agricultural Products in Bangladesh under Uncertainty

Abstract: In this study, we developed four different mathematical formulations for the coordination and three stage supply chain optimization of agricultural products in Bangladesh. This research, we assumed that the farmers-retailers-distributors are coordinated by jointly participation their information. To developed a Mixed Integer Linear Programming (MILP) model and analyze the situation of inadequate production capacity for the producer as the reason for shortages. The producers will coverage these shortages by outsourcing, which decided very beginning of the SCN. This plays a very important role in deciding so as to mitigate these challenges and to extend the system performance and individual gain of the SCN. The coordinated mechanism among the participants of the market has been prominent to realize the best answer. The SCN was modeled using a formulation in MILP that maximizes the total profit and also to validate our proposed model, analyzed the total profit for real data and normal distribution data for various parameters. The formulated MILP model were solved by a mathematical programming language (AMPL) and results obtained by appropriate solver MINOS. Numerical example with the sensitivity of several parameters has been deployed to validate the models. We conclude from this study, profit of all participants increased by SCN coordination system without ant additional investment.