Abstract
In this paper we present a mathematical model for reducing post-harvest loss (PHL) in grain supply chain networks. The proposed model determines the optimal logistics for grain transportation and infrastructure investment by identifying the optimal locations for new pre-processing facilities and by optimising roadway/railway capacity expansion. The objective is to minimise the total system cost, including both infrastructure investment and economic cost from PHL. In this paper we incorporated both quality and quantity PHL during the transportation, transhipment, and pre-processing stages in the supply chain and considers different PHL rates for processed and unprocessed grains. Finally, we conducted a numerical analysis on a real-world network in the State of Illinois and a series of sensitivity analyses to provide insights into the optimal system design under different scenarios.
•Presents a grain supply chain design model for reducing post-harvest loss.•Optimises grain processing location, transportation and infrastructure investment.•Considers quality and quantity losses of grain during transportation and processing.•Numerical case study and sensitivity analysis yielded managerial insights.