Analysis and Optimisation of an Olive Oil Supply Chain: a Case from Turkey

The aim of this study is to determine potential improvement areas for food supply chain operations. For this purpose, a model is developed to optimise the distribution network of an olives and olive oil company in Turkey. The current distribution system of the company is analysed and a mathematical programming model is developed to provide a distribution design to maximise the profit. An integer programming model is used and the problem is solved by using CPLEX solver/GAMS Software. Production volumes for each product type proposed by the results are different than the real production volumes. Based on the optimal results proposed by the solution, required changes in the production volumes are given. Similarly, distribution of optimal quantities of each product to each province is different than the real data. Results also suggest that, production and distribution network decisions for four different product groups must be reconsidered and production and distribution systems of the company have to be redesigned. Although this paper focuses on a single case, the model proposed in this study and findings of this study provide guidance for food supply chain members with similar problems.