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Optimizing farm-to-market logistics in India using analytical decision modeling to maximize profit and support local farmers.

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🚜 Analytical Decision Modeling Project: Optimizing Farm-to-Market Logistics in India 🌾

📝 Overview

This project focuses on enhancing farm-to-market connectivity in India by optimizing logistics for a burgeoning agricultural distribution company. Using Excel Solver's linear modeling approach, the project maximizes profitability and space utilization within a TATA TAURUS truck while adhering to weight and volume constraints for transporting various agricultural products. This solution aims to support small-scale local farmers by connecting them to larger markets more effectively.


📍 Background: Bridging Agriculture & Logistics

Our logistics startup is dedicated to:

  • Empowering Local Farmers: Ensuring profitable access to urban markets.
  • Reducing Transit Time: Speeding up transport to maintain freshness.
  • Promoting Sustainability: Reducing the carbon footprint through optimized routes.

📊 Figures

Freezer Compartment Products Figure 1: Specifications of Freezer Compartment Products

Non-Freezer Compartment Products Figure 2: Specifications of Non-Freezer Compartment Products


🔍 Problem Statement

We aim to maximize profit by determining the optimal product mix in both freezer and non-freezer compartments, given weight and volume constraints. The objective is to:

  1. Maximize Profit
  2. Efficiently utilize available space.
  3. Maintain product quality standards.

🚛 Truck Specifications: TATA TAURUS

  • Max Load Capacity: 21 tons
  • Storage Compartments: Freezer and Non-Freezer sections
  • Operational Efficiency: Enables temperature control for diverse products

📊 Mathematical Model

Inputs and Parameters

Input/Parameters

Decision Variable

Objective:

Maximize profit:
Objective

Constraints:

  1. Weight constraints for Freezer and Non-Freezer compartments.
  2. Volume limits for each compartment.
  3. Bounds for each product type.

Constraints


💼 Business Approach

1. Building Sustainable Partnerships

  • Direct collaboration with local farmers to source fresh produce, enhancing product freshness and supporting the local economy.

2. Optimized Linear Modeling

  • An Excel Solver model focusing on maximizing profitability while managing transport constraints.

3. Managing Storage Constraints

  • Ensures integrity of products with distinct constraints for freezer and non-freezer goods.

🔧 Solver Approach & Methodology

Utilizing Excel's linear solver, we input constraints for weight and volume, defining product boundaries to maximize profit and space efficiency. This approach balances the weight and volume while aiming to fill the truck with profitable goods.


📈 Key Recommendations

  1. Optimize Specific Products: Deliver more fish, mangoes, and ragi based on model insights.
  2. Integrate Optimization Model: Continuously update the model with real-time data to adapt to market changes.
  3. Expand Market Reach: Explore wholesale retailer partnerships in areas lacking access to specialty products.

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