MANAGERIAL
DECISIONS IN LOGISTIC SYSTEMS OF MILK PROVISION ON VARIABLE PRODUCTION
CONDITIONS
Anatolii
Тryhuba
Lviv
National Agrarian University, Ukraine
E-mail: atryguba55@gmail.com
Oleksandr
Hridin
Kharkiv
Petro Vasylenko National Technical University of Agriculture, Ukraine, Ukraine
E-mail: aleksandrgridin2015@gmail.com
Nataliia
Slavina
Associate
Professor, State Agrarian and Engineering University in Podilya, Ukraine, Ukraine
E-mail: natalyslavina05@gmail.com
Iryna
Mushenyk
Associate
Professor, Department of Professional Education, State Agrarian and Engineering
University in Podilya, Ukraine, Ukraine
E-mail: mushenik17@ukr.net
Ella
Dobrovolska
Ph.D.
in Economics; State Agrarian and Engineering University in Podilya Ukraine, Ukraine
E-mail: dobrovolskaela@gmail.com
Submission: 12/12/2019
Revision: 1/7/2020
Accept: 1/17/2020
ABSTRACT
The study of the influence of
variable production conditions and the work in logistics milk harvesting
systems on the value indicators of their functioning has been carried out. A
method that enables to solve the task of coordinating the content of work with
variable production conditions is proposed. It has been established that there
are seven variants of the content of work in logistics milk harvesting systems,
each of which has its own specifics. Computer experiments were carried out
using the developed simulation model of logistics processes implementation. On
the example of the production conditions of the Brody district in the Lviv
region, trends in changing the cost performance of logistics operations for
various content during the year are established. On the basis of the defined
cost indicators, specific costs of funds for the execution of logistic works
for each of the variants of their content are determined. It is substantiated
that effective performance of work in logistic systems of milk harvest requires
operational planning of their content for each of the days of milk harvest
season. The conducted studies will be useful for managers who perform
operational planning in logistics milk harvesting systems.
Keywords: managerial decisions; operational planning; logistics systems; milk harvesting; content of works
1.
INTRODUCTION
Nowadays there still is a problem of
providing people with quality food products. At the same time a complete diet
is impossible without dairy products. However, dairy products are perishable
foods and their quality is regulated by EU standards (ZUBA-CISZEWSKA, 2018; STANDART ISO9000). The quality of dairy production depends both on
technology and technical equipment, and on the efficiency of the work in the
chain of production-harvesting-processing of milk-raw materials.
For the efficient functioning of
logistic milk harvesting systems (LMHS), tasks related to harmonizing the
content of work with variable production conditions should be solved daily.
This task is related to the operational planning of the content and timing of
the work in the LMHS. It needs a toolkit for planning that takes into account
the features of these systems. One of the main features of this is that the
effectiveness and timing of work are largely determined by both their changing
production conditions and their content.
In
addition, the toolkit for the operational planning of the content and timing of
work implementation in the LMHS
should take into account the characteristics of production conditions, such as the
daily volume of milk harvested during the calendar year, and the
characteristics of the road network that are specific to each administrative
area.
There are the scientific papers on
operational planning of works in various sectors of the national economy
(HOFSTRA et al., 2019; SKARŻYŃSKA; ABRAMCZUK, 2017; PAREDES-BELMAR et
al, 2016; BENDOLY et al, 2010; BUIJS et al., 2016). They substantiated the
expediency of systematic decision-making in the presence of a set of objects
(milk provision points (Pps)), which is typical for LMHS.
It is proved in scientific papers
(PAREDES-BELMAR, 2016; BENDOLY et al., 2010; BUIJS et al., 2016) that the
content of LMHS works for a set of software should be substantiated
systematically from a single center (milk processing enterprise (MPE)). However, none of these scientific works reflects the
peculiarities of milk production on the territory of the administrative
district.
Scientific works (MWANGI; KARIUKI, 2015; BUIJS; WORTMANN, 2014);
RIZOJEVA-SILAVA; ZEVERTE-RIVZA; PILVERE, 2018;
BASHYNSKY, 2019). relate to the planning of works in various applied fields. In
particular, these works prove that it is impossible to effectively plan any
work without using approaches, methods and models that take into account
peculiarities of the subject area. You should also develop application software
to accelerate and improve the quality of management decisions. Also in the
above-mentioned scientific works such instrumental means are offered. However,
it is impossible to use them for planning works in LMHS as they do not take into account changing
production conditions, as well as their influence on the content of work.
In scientific papers (LIOTTA; STECCA;
KAIHARA, 2015; PETRAŠKA; ČIŽIŪNIENĖ;
PRENTKOVSKIS; JARAŠŪNIENĖ, 2018; MICHA et
al, 2017) it is proposed to determine the
indicators of the use of vehicles based on the simulation of transport
processes. However, it is impossible to use them to reconcile the content of
works in LMHS with variable production conditions. In particular, they do not
take into account the volatile daily volumes of milk harvesting during the
calendar year, the peculiarities of the administrative territory and possible
variants of the content of the logistics operations.
Scientific papers (QUINLAN, et al. 2012;
TRYHUBA et al. 2019; RATUSHNY et al., 2019) relate to the planning of the content and time of
execution of works and they take into account the production conditions on the
basis of simulation process. However, the proposed toolkit does not take into
account the features of the production conditions of LMHS, as well as the
seasonality of milk harvesting. This significantly influences the effectiveness
of logistics planning for milk harvesting (TRYHUBA et al., 2018;
ТRYHUBA et al., 2019).
The algorithm for matching the
content and timing of work implementation in logistics systems for milk
production with production conditions was developed in a scientific paper
(TRYHUBA et al., 2019). However, it is based on average values of the duration
of logistics operations, which does not fully reflect the real conditions. In
addition, this work does not take into account the state of the road network
between the software and the MPE, which does not allow qualitative and accurate
research into the impact of the content and timing of the work on LMHS on their
cost, taking into account the changing production conditions.
The basis for effective planning of
the LMHS's operation is the prognosis of variable production conditions, as
well as the reflection of the performance of their work on the basis of
simulation (TRYHUBA; BOYARCHUK; TRYHUBA; BOYARCHUK; FTOMA, 2019)). However, some administrative territories require
the creation of specific LMHS, for which
relevant studies should be carried out (RATUSHNY et al., 2019).
To solve the task of harmonizing the
content of work with variable production conditions, we can use specific
methods, algorithm and computer program, which will ensure the study of the
impact of changing production conditions and the content of these works. In
addition, it will provide a definition of specific deductible expenditures for
work on certain days of the milk harvest season, which underlies the effective
planning of the LMHS operation.
Given the fact that individual LMHS
have specific production conditions for milk procurement, there is a need to
investigate the impact of the content and lead time of the LMHS on their cost.
It is necessary to take into account the changing production conditions, as
well as the components of the execution time of logistics operations, which are
conditioned by the condition of the road network.
At the same time, qualitative
alignment of the content and time of work implementation if the LMHS with
changing production conditions requires the development of an appropriate
method based on simulation modelling of logistics
operations.
The purpose of the work is to
develop a method and study the impact of the content and time of work
implementation at LMHS on their cost taking into account the changing production
conditions.
2.
THEORETICAL BACKGROUND
In the given LMHS works are carried
out every day, these works include: 1) the reception and primary processing of
milk (cooling) in the PP; 2) loading of vehicles in the PP; 3) milk
transportation to MPE; 4) unloading of vehicles in MPE. The effectiveness of
these works in LMHS depends on their content during a particular period. At the
same time, their content is determined by the daily amount of milk provision on
the territory of the given LMHS.
The amount of milk provision from
individual milk farms can vary during the year (TRYHUBA et al., 2018). To solve the task of coordinating the content of work with variable
production conditions of the given LMHS we developed a methodology, the
algorithm of which involves the following steps: 1) the formation of a database
on the production conditions of LMHS; 2) forecasting the daily amount of milk
provision from individual farms during the year; 3) simulation of the work to
determine their functional indicators; 4) valuation of individual variants of
the content of the work; 5) determining the effective version of the content of
the work (TRYHUBA; ZACHKO; GRABOVETS, et al. 2018).
We
developed a method of harmonization of the content of work with changing
production conditions of specified in the LMHS with the changing production
conditions, which involves five steps (Figure 1), in order to solve the problem
of harmonizing the content of works with the variable production conditions of
a given LMHS.
Figure 1: Stages of the method of reconciling the content and lead time of work
implementation in LMHS with changing production conditions
Step
1. Formation of a database on production conditions of LMHS and
analysis of possible variants of the content of work execution. The formation of the database on
the production conditions of milk products involves studying the requirements
of current standards for milk provision, justification of the characteristics
of the climatic conditions in the milk harvesting zone, forecasting of demand
and value for dairy products. Additionally, the presence of milk farms and
their territorial location in relation to the Pp in the given LMHS is
established, and the characteristics and the state of the network of roads
between milk farms and PPs are explored.
Information on the presence and
territorial location of milk farms that supply raw milk in the Pp is taken from
the MPE reporting documentation (TRYHUBA, et al. 2018). Information on the amount of raw milk from each farm in
the separate day of the calendar year for which work is coordinated is taken
from milk producers. The received information on the amount of raw milk
harvesting is transmitted to MPE, where the coordination of works during
operational planning through the telecommunication network is carried out.
tep 2. Forecasting daily volume of of milk procurement
from individual farms throughout the calendar year. Information
on the availability and territorial location of PPs from which raw milk is
supplied to the MPE is taken from the MPE reporting documentation (TRYHUBA, et
al. 2018).
Information on the volume of raw
milk procurement from each of the PPs in a separate day of the calendar year,
for which procurement and transport work is agreed, is obtained from milk
producers. The obtained information on the volume of raw milk procurement is
transmitted to the MPE, where the work is coordinated during the operational
planning through the telecommunication network.
The peculiarity of forecasting the
volume of milk production in
a single day is that it is variable and depends on the period of harvest
(lasting 365 days) throughout the calendar year. However, the bulk of milk
production falls during the summer months, during which vehicles are heavily
used for transport and procurement work (Figure 2).
The total volume of milk procurement in the ј-th day is:
, (1)
where – number of dairy cows
per day;
– coefficient that
takes into account the proportion of raw milk that the dairy farm leaves for
its own needs.
Figure 2: Graphical interpretation of the
prediction of the volume of milk harvesting
from the i-th farm in the ј-th per day:
– the daily volume of milk harvesting respectively
in 1, 2, 3,…, i-th dairy farm producing milk; T - duration of milk harvesting season (calendar year);
–
-th - day of the milk harvesting season
The duration of a tanker truck without a load is
determined by the expression:
, (2)
where – duration of movement
of the
-th tanker truck without cargo, hour;
– speed of movement of
the
-th tanker truck without cargo, km / h;
– the traveled
distance, km.
The
speed of th -th tanker truck without cargo is determined by the
expression
, (3)
where – class of roads;
– the mass of the
-th tanker truck without cargo, t.
The duration of the territorial
movement of a tanker truck is determined by the expression:
, (4)
where – duration of movement
of the
-th tanker truck with cargo, hour;
– speed of movement of
the
-th tanker truck with cargo, km / h;
, (5)
where – mass of the
-th tanker truck when moving with cargo, t.
The loading time of a tanker truck
in PPs is determined by the expression:
, (6)
where – the duration of loading of the
-th tanker truck in the
-th of PPs, h;
– volume of milk in
-th
of PPs, t;
– capacity of loading
equipment, t / h.
The duration of unloading a tanker
truck in the MC is determined by the expression:
, (7)
where – duration of unloading the
-th tanker, h;
– cargo of
-th tank truck, t;
– performance of
unloading equipment, t / h.
The length of service of the tanker
of a separate route is determined by the expression:
, (8)
where – length of stay
-th of the tanker on the
-th route, hour;
– total distance
traveled by tanker truck on the
-th route, km;
– the amount of milk
collected from the
-th number of PPs per route, t;
– number of PPs served
by one route, units
Step 3.
Modelling the work implementation in LMHS to determine their functional indicators. The variations in the
content and time of the execution of works are a finite set. Preparation works
on the delivery of raw milk from PP to MPE can be carried out one, two or three
times a day. This is due to the physiological characteristics of cows and the
peculiarities of the organization of harvesting works. With regard to the
physiological characteristics of cows, in the winter months the cows are milked
twice a day, as the duration of the light at a daytime is short. In all other
months of the year, milking cows is organized three times a day. This indicates
that it is impossible to organize the harvest of milk in a particular day more
times than the number of milking cows in this day.
If the milk is harvested three times
a day, then each PP should plan trips of tank-vehicles three times as well. If
milk is transported twice a day, then there are several options for the content
and timing of transportation work: 1) milk that is harvested in the morning and
noon is transported at midday, and milk that is harvested in the evening should
be transported in the evening; 2) milk that is harvested in the morning, should
be transported in the morning, and milk that is harvested at noon and evening
is transported in the evening; 3) milk that is harvested in the evening of the
previous day may be transported in the morning of the present day, and milk
that is harvested at noon may be transported at dinner.
If the transport work is organized
once a day, the following options for the content and timing of these works are
possible: 1) the milk that is harvested at noon and in the evening of the
previous day and in the morning of the current day may be transported in the
morning; 2) milk that is harvested in the evening of the previous day and in
the morning and the noon of the present day is transported at noon; 3) milk
that is harvested in the morning, noon and in the evening of the current day
may be transported in the evening.
Consequently, there are seven
options for the content and time of work among which the most effective should
be determined. Determination of an effective variant of work is carried out on
the basis of simulation according to the given production conditions of LMHS.
The simulation of the execution of
works is carried out in order to determine the indicators of these works for
each of the previous substantiated variants of the content and time of these
works. These indicators are: 1) technological needs in tank trucks and PP; 2)
time costs for individual work and maintenance of individual routes (); 3) the way passed (
) and the freight traffic (
) on separate routes of milk-raw materials transportation; 4)
electricity consumption of refrigeration equipment and water for its washing.
To determine these characteristics, we will use the simulation model, which
consists of the following blocks: 1) the formation of the database for
modeling; 2) simulation of transport work on particular routes; 3)
determination of characteristics of works.
Simulation modelling of procurement
and transport works was carried out in stages:
A flowchart and algorithm for
statistical simulation modelling, as well as software for its implementation on
a PC, were developed.
Preliminary modelling was performed
and the adequacy of the model was verified for the actual duration of
procurement and transport work for the given production conditions.
Computer experiments were performed
(simulation modelling of procurement and transport work) for different content
and time variants.
The results of simulation modelling
were worked out and the dependences of the characteristics of procurement and
transport works on their content and time of execution were substantiated.
The simulation model was supposed to - simulate performance of work for various variants of their content and time, as well as the determine indicators of these works. On the basis of mathematical analysis of the results of the simulation, the cost characteristics of the work were determined.
Step 4. Cost evaluation of separate options for the
content of the work implementation at LMHS. The cost
estimation of each of the variants of the content and the time of execution of
works is based on the received characteristics of works. For each version of
the content and the time of work execution there are current and capital
expenses determined.
Effective content and time of work
are justified by
comparison of
and
on their realization.
The function of choosing an effective version of the content of the work has
the form:
.
(9)
Current and capital expenses for
each of the variants of the content of works are determined, respectively, as
the sum of current and capital expenses for performing and i- types of works:
,
. (10)
Step 5. Determination of
regularities of change of cost indicators and effective variant of the content
of work performance in LMHS. Based on the quantified values of the
projected cost indicators of the individual options for the content of the work
at LMHS, they build their dependence on the day of the harvesting season.
Correlation
and regression analysis of these dependencies gives the opportunity to
substantiate their equations and correlation coefficients, confirming the
likelihood of the obtained patterns of change in the cost indicators of
individual options for the content of work in LMHS taking into account the
changing production conditions. Effective content is the one option work
implementation in LMHS, which ensures minimal consumption of resources to
perform daily volume of harvesting and transport operations.
3.
MATERIALS AND METHODS
During the researches, the statistic
data of "Brody's factory of dry defatted milk" in Brody, Lviv region
about the availability of milk farms, from which milk is harvested, amount of
milk provision in each of them, availability and territorial location of the PP
was used.
With regard to determining the
duration of particular works, this stage is carried out on the basis of
conducting production experiments for a given project environment. To do this,
a time-study of performed works should to be done by using a stopwatch.
According to these data, the specific duration of loading and unloading of
vehicles that are available at MPE is determined. In addition, fixing the path
segments between PP and between PP and MPE using the speedometer of vehicles
and the duration of their movement by using a stopwatch. Based on these data,
the average technical speed of tank vehicles is determined.
The methods of system analysis and
synthesis for the formalization of the characteristics of the production
conditions of LMHS are used. In order to determine the functional
characteristics of LMHS, simulation was performed and computer experiments were
performed. In order to determine the length of components of logistic work, the
methods of time-study and statistical estimation of the results of experiments
were used. For the analysis of the experimental data obtained, the method of
graph-analytical analysis was used.
4.
RESEARCH RESULTS AND DISCUSSION
Analysis of production conditions LMHS was performed for
the conditions of PJSC „BRODY
DRIED SKIMMED MILK PLANT”, in Brody, Lviv
region (Ukraine). On the basis of the method described above, the daily volume
of milk intake in MPE from the software was performed during the calendar year.
For each of the 27 software of the specified administrative district, obtain
data on the volume of milk inflow for processing during separate days of the
calendar year (Table 1).
Based on the obtained data, we
forecast daily milk flow to MPE from the software during the calendar year. The
results of this prediction are presented in Figure. 3.
Figure 3:
Estimated trends in daily milk supply in MPE from software over the calendar year
Based on the obtained results of
forecasting trends in daily milk flow in MPE from software over the calendar
year, it is clear that they are variable. It is established that there are two
periods of milk receipt for processing - intensive (from 119 to 301 days of the
calendar year) and non-intensive (from 1 to 118 and from 302 to 365 days of the
calendar year).
In order to study the influence of
changing production conditions and the content of the works in LMHS on their
cost, the imitation of logistic processes was performed on a specially designed
computer program. This simulation was carried out in accordance with
pre-substantiated variants of the content of logistic works under the variable
production conditions of "Brody Factory of Dry Defatted Milk" (Brody,
Lviv region), the characteristics of which are given in our paper.
On the basis of simulation of the
implementation of logistic processes for each of the variants of the content
and the time of execution of works, the following system indicators are
determined: total daily cooling time of raw milk in PPs, total daily
consumption of water for PP, total daily traffic through tank vehicles, total
daily operating time of tank vehicles, total daily freight turnover by
tank-vehicles.
It is established that the main
indicators of the performance of works in LMHS depend on the variants of the
content of their organization and the period of the harvest season. The
obtained research results are the basis for determining the cost indicators for
the performance of works in LMHS. In particular, on their basis, the choice of
an effective version of the content of works in LMHS is carried out. For each
of the variants of the content of these works, total daily expenses were
determined (Figure 4) for work and total investment
(Figure 5), that are needed for these works on different periods
of milk harvesting.
Figure 4: Dependences of total daily operating costs for
work in LMHS from the period of milk harvest season, provided that the milk is
transported from the PP to the MPE: 1 – three times a day; 2 – twice a day; 3 –
once a day.
Figure 5: Dependencies of total daily capital
expenditures on the execution of works from the time of the season of its
harvest, provided that the milk is transported from PP to MPE: 1 – three times
a day; 2 – twice daily; 3 – once a day
The obtained correlation
dependencies (Figure4) indicate that the current
expenses for the work are described by the equations:
· milk is transported from PP to MPE once a day
, r=0,93; (4)
· is transported from PP to MPE twice a day
, r=0,95; (5)
· is transported from PP to MPE three times a day
, r=0,9. (6)
The obtained correlation
dependencies (Figure 5) indicate that the tendencies of
changes in the volume of investments for work are described by equations:
· is transported from PP to MPE once a day
, r=0,91; (7)
· is transported from PP to MPE twice a day
, r=0,93. (8)
Provided that the milk is
transported from the PP to the MPE three times a day, the investment for the
work is almost unchanged during the calendar year. Based on the specified cost
characteristics of the work, determined specific costs of funds for the
performance of these works for each of the variants of their content. This made
it possible to establish the dependence of the minimum expenses for the work
performed , on rational variants of the content of works, from the
period of the harvesting season of milk (d)
(Figure 6).
Figure 6: Dependence of minimum specific expenses on works in LMHS
from the period of milk harvesting
The obtained correlation dependence
(Figure 6) shows that the minimum specific
expenses indicated for the work are described by the equation:
, r=0,98. (9)
The obtained dependence of the
minimum specific expenses for the execution of works from the time of the
season of its harvest (Figure 6)
suggests that the specific costs presented for the performance of works in the
LMHS are variable during the year. In addition, the minimum specific costs
indicated for these works vary with variations in their content.
Conducted studies of the impact of
the content and lead time of work implementation at LMHS on their cost, taking
into account the changing production conditions on the basis of simulation
modelling of the execution of logistics work, made it possible to determine the
quantitative values of the cost indicators of these works for
different contents in separate periods of the calendar year.
Existing scientific works are based
on the average values of the duration of logistics operations,
which does not fully reflect the real conditions. In addition, these works do
not take into account the state of the road network between the software and
MPE, which makes it impossible to conduct a qualitative and accurate study of
the impact of the content and lead time of the works at LMHS on their cost,
taking into account the changing production conditions.
The simulation work performed by us
at LMHS has made it possible to eliminate these shortcomings and to more
accurately investigate the impact of the content and lead time of work
implementation at LMHS on their cost, taking into account the changing
production conditions.
The analysis of the
individual variants of the content and the time of execution of procurement and
transport works in a given LMHS shows that for three times transportation of
milk, in comparison with one-time one, the fluctuation of current costs of
funds for the execution of works is reduced in 1.05… 1.65 times. At the same
time, reducing the number of times milk is transported on a single day leads to
an increase in the required load of vehicles and a decrease in the rate of
their loading during the calendar year.
It is established that as
the volume of logistics work on milk procurement increases, the specific values
of the cost performance of these works decrease (specific costs
of the work performed at LMHS are given) (Figure 6). This is due to the
increase in the truck load factor. At the same time, minimal costs are
attributable to the procurement and transport operations during the period of
maximum milk production (from 119 to 301 days per calendar year). It is during
this period that the maximum load of tankers is observed. The obtained
dependency (Figure 6) underlies the substantiation of the effective variant of
the content and time of the workpiece transport in the given LMHS.
Consequently, based on the results
obtained, it can be argued that for the effective performance of works in LMHS
it is necessary to plan their content for each day of the season of milk
harvesting. This will provide an opportunity to justify a rational hierarchical
structure of work, which will provide the minimum cost of resources in LMHS.
The performed research will be useful for managers who perform LMHS planning,
as well as during their design. The substantiated regularities of changes in
the cost performance indicators will accelerate the implementation of the
management decision-making process and increase its quality.
5.
CONCLUSION
To solve the problem of coordinating
the content of work in logistic milk harvesting systems with changing
production conditions, a methodology and simulation model for the
implementation of logistic processes was developed. They provide a systematic
study of the relevant work due to the consideration of changing production conditions
given by LMHS. It has been established that there are seven variants of the
content of logistics operations, each of which should be considered during the
planning of the LMHS operation. The estimating criterion is used to determine
the effective content of works in LMHS.
The simulation of the implementation
of processes in the LMHS allows the definition of system functional performance
indicators, which underlie the forecasting of current costs for the functioning
of these systems. It is established that total daily indicators of LMHS
functioning depend on the variant of performance of work in them and the period
of milk harvest season.
The variable nature of current and
capital expenses for performing works in LMHS for different variants of their
contents became the basis for a search on the estimating criterion of an
effective hierarchical structure of execution of daily procurement and
transport work. Based on the conducted research with the simulation model for
the conditions of "Brody factory of dry defatted milk", it was
substantiated that the biggest influence on the cost of carrying out works in
LMHS has the daily amount of milk harvesting, provided that it is transported
from the PP to the MPE three times a day.
At the same time, this effect
decreases with a decrease in the number of trips to individual PP during the
day. The specific expenses for the effective content of works in LMHS are
variable during the harvesting season (Figure 3) and are described by the
polynomial of the fourth degree. The smallest expenses for the functioning of
LMHS occur in the summer months, which are characterized by maximum amount of
milk provision.
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