Product Assembly and Distribution Optimization in an Agribusiness Cooperative

Large-scale mathematical models were developed to analyze Golden Vale Co-Operative Creameries Ltd. problems collecting milk and transporting it and other products, and also to investigate the likely effect of impending E.E.C. legislation. A vehicle scheduling formulation and an interactive transshipment-type system with heuristics were repeatedly analyzed under various management scenarios, and they led to major rationalizations in milk collection and fertilizer and animal food distribution and warehousing. Annual savings of around $4 million are expected and strategies to achieve this are being implemented.