• There is a need to develop a good understanding for the basic concepts that affect the cost of a product through the supply chain.Problem Identification • Milk is a highly perishable commodity and surplus cannot be stored for a long time. therefore it requires efficient Supply Chain System. .

maximize customer services and flexibility in the Supply chain . • To develop a model and suggest strategies to enhance coordination for the whole Dairy Sector. • To minimize the cost.Objective • To study and analyse the on-going Supply chain management practices in a Dairy industry located in Coimbatore.

Methodology: .

• Optimization of results obtained. • Formulating a mathematical model and simulation model for the Supply chain. • Suggestions . • Analysing the collected data with the formulated Mathematical model as well as simulation models.Methodology • Study of Dairy supply chain( From farmers to Customers) • Collection of data that influences the supply chain.

Dairy Supply chain Process Farmer Cooperative societies Facility warehous e Consumer Retailer Distributor .

Set of Cost Involved: • Raw Material Cost • Taxes • Transportation • Labour Cost • Other services • • • • • • • Processing cost Transportation cost Labour cost Taxes Procurement cost Inventory Holding cost Stock-out cost • Procurement cost • Distribution cost • Labour cost • Taxes • Stock-out cost .

– Factors influencing milk production – Input cost based milk procurement price – Simulation models .Review of literature • The literatures is being reviewed in the following four major heads such as: – food and dairy supply chain and its operational issues.

Business Information Systems & 2009 A simulation. Ming Jiang Int. Fang Zhang .M. A.K.and optimisation-based decision support system that helps the scheduler in a dairy firm to schedule milk tankers and production .and optimisation-based decision support system for an uncertain supply chain in a dairy firm Weiqi Li .Literature Review Title Author Journal & Year Inference Integration of SCORModeling and Logistical Concept of Management in the System of Internal Transportation of Milk Cooperative Oleksandr Velychko Mediterranean Journal of Social Sciences & 2015 Application of concepts/technologies of SCOR-modeling with logistical concept/technology of management in the milk supply chain Vehicle Routing Approach for Improvement in the Supply Chain of Milk Industry Harisri. J. A simulation. Sharma Journal of Basic and Applied Engineering Research & 2016 Minimize the procurement cost by minimizing the distance travelled by vehicles and hence minimizing the transportation cost and thereby increase the profit of the plant.K. Agrawal . S.Thulasi .

Title Author Journal & Year Inference A Study on Strengthening the Operational Efficiency of Dairy Supply chain in Tamilnadu M.Subburaja.Ramesh Babub. Nookesh babu Proceedings of the World Congress on Engineering & 2009 Emphasis is mainly on production and distribution activities. integrated animal health plan and information flow Supply Chain Management in a Dairy K. Supply Chain Management in OMFED Adyasha Suvadarshini . K. T. implementing dynamic milk procurement method. with a view to find out purchase plan of raw milk. Gopal Prasad Roy Journal of Business and Management Sciences & 2014 A detailed discussion regarding OMFED's distribution channels has been carried out starting from procurement. Venkata Subbaiah . production plan of product mix and transportation plan of the products.Suresh Subramonian Conference paperElsevier & 2014 Creation of special dairy zone. Narayana Rao K . strengthening cooperative societies. B. creation of feed bank and increasing fodder productivity. marketing to finally delivering milk and its products to the customers .