An optimisation model for purchase, production and distribution in fish supply chain – a case study

This paper presents an optimisation model for spawn purchase, fish culturing production process and harvested fish distribution in a fish supply chain. Due to the complexity and variety of real-world fish supply chains, the model is built based on a case study for a real trout fish farm to illustrate the methodology on how to incorporate influential factors from both warm chain and cold chain. Warm chain mainly considers the biological factors while fish is alive and cold chain mainly considers the economic factors after fish is ready for harvest, harvested, and processed. The model seeks to improve the trout farm production planning to help decision-making on spawn purchase quantity, the best time to harvest fish, and the farming periods. In addition, the model adopts a customer classification method in distribution planning that is able to prioritise the delivery of fresh fish to the most profitable customers. A mixed integer linear programming (MILP) model was developed to maximise the total profit. The experimental results demonstrate that farmers’ total profit can be increased after applying the proposed optimisation strategy, compared to the traditional farming strategy.