This paper discusses fundamental issues in dairy logistics in a tutorial format. We summarize findings of more than twenty student groups who carried out independent literature surveys and interviewed professionals in the industry. The critical issues in carrying out dairy products logistics, the logistics strategies that are employed by dairy producers in the world and some newly introduced products in the industry and in what ways the introduction of these new products changes the logistics operations are pointed out. The importance of hygiene, cooling, time, humidity, cost, distance, flexibility and meeting the demand is emphasized under the subtitle of critical issues. Except those critical issues, there are some others like short shelf life, quality, emulsion, pasteurization, UHT which depend on the characteristics of the milk and milk products. Logistics strategies in dairy industry are studied by dividing it into two subtitles: the ones that are used in the world and the ones in Turkey. A benchmarking between Turkey and the world is also included at the end. As the variety of milk and milk products increase day by day, the new ingredients of new products also affects the transportation plans. Those impacts are also discussed as a part of our paper. Some descriptive drawings and figures are also embodied. Throughout this paper, only the production, warehousing and transportation of milk, cheese, yoghurt, and similar dairy products are discussed. Ice-cream especially is set out of the scope as it completely differs from actual dairy products as milk, cheese and yoghurt in the means of production and distribution.
A Step Towards Revolution In Logistics And Cold Chain Management In India- A ...IOSR Journals
With the advent of globalization and internationalization of products, the preference is always for the best quality and if not matched then product is out of the competition. Apple being premium product in fruit category would demand very high standards as far as product presentation and variety is concerned, since world wide best quality product is available leading the trade. Fresh and Healthy Enterprise Limited, Subsidiary of Concor India, Ministry of Railways-Government of India , has made a remarkable and unique presence in Logistics and storage technology however on the backend, the fruit quality, quantity, variety and market conditions could limit the progress in a time to come. We are aware of the challenges and solutions therefore as well, so it’s the high time that we need to control the links of supply chain and re-map it for the future generations of India and Indian economy on the global platform.
11% of worlds total vegetables production is accounted by India but India's share in global vegetable trade is only 1.7%
127 million tonnes of milk was producted in FY11-12, but cold storage capacity is only available of 70,000 - 80,000 tonnes of milk
India transports 104 tonnes of perishable produce across India, but only 4 million tonnes moves in reefer trucks
20% - 30% of fish production is annually wasted in India
25,000 unregisterd slaughter houses are present in India, which lack chilling facilities
Most of the equipments is use is outdated & single commodity based
Food manufacturing transforms livestock and agricultural products into products for consumption. It involves businesses that collect raw food materials and process them into edible products. It processes a wide range of food and drinks to cater to the needs of the global population. In the United States, the food manufacturing industry has gone through significant changes in recent decades due to climate change effects on agriculture, rising environmental standards, severe competition, and changing and diverse customer expectations. This paper provides a primer on food manufacturing. Matthew N. O. Sadiku | Tolulope J. Ashaolu | Sarhan M. Musa ""Food Manufacturing: A Primer"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-2 , February 2020,
URL: https://www.ijtsrd.com/papers/ijtsrd30132.pdf
Paper Url : https://www.ijtsrd.com/engineering/food-engineering/30132/food-manufacturing-a-primer/matthew-n-o-sadiku
A Step Towards Revolution In Logistics And Cold Chain Management In India- A ...IOSR Journals
With the advent of globalization and internationalization of products, the preference is always for the best quality and if not matched then product is out of the competition. Apple being premium product in fruit category would demand very high standards as far as product presentation and variety is concerned, since world wide best quality product is available leading the trade. Fresh and Healthy Enterprise Limited, Subsidiary of Concor India, Ministry of Railways-Government of India , has made a remarkable and unique presence in Logistics and storage technology however on the backend, the fruit quality, quantity, variety and market conditions could limit the progress in a time to come. We are aware of the challenges and solutions therefore as well, so it’s the high time that we need to control the links of supply chain and re-map it for the future generations of India and Indian economy on the global platform.
11% of worlds total vegetables production is accounted by India but India's share in global vegetable trade is only 1.7%
127 million tonnes of milk was producted in FY11-12, but cold storage capacity is only available of 70,000 - 80,000 tonnes of milk
India transports 104 tonnes of perishable produce across India, but only 4 million tonnes moves in reefer trucks
20% - 30% of fish production is annually wasted in India
25,000 unregisterd slaughter houses are present in India, which lack chilling facilities
Most of the equipments is use is outdated & single commodity based
Food manufacturing transforms livestock and agricultural products into products for consumption. It involves businesses that collect raw food materials and process them into edible products. It processes a wide range of food and drinks to cater to the needs of the global population. In the United States, the food manufacturing industry has gone through significant changes in recent decades due to climate change effects on agriculture, rising environmental standards, severe competition, and changing and diverse customer expectations. This paper provides a primer on food manufacturing. Matthew N. O. Sadiku | Tolulope J. Ashaolu | Sarhan M. Musa ""Food Manufacturing: A Primer"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-2 , February 2020,
URL: https://www.ijtsrd.com/papers/ijtsrd30132.pdf
Paper Url : https://www.ijtsrd.com/engineering/food-engineering/30132/food-manufacturing-a-primer/matthew-n-o-sadiku
The Future of the Food Supply Chain & LogisticsAngela Carver
The future of the food supply chain is unclear as it is in a state of constant change. This is not unusual for supply chain operations as there are many factors driving change. Due to the already global nature of the food supply chain the implications and impact of this change is far reaching. Some of the top factors impacting the food supply chain include: governmental regulation changes, growing customer demand, increasing globalization and rising infrastructure investment. This is leading to a variety of creative solutions that are allowing for the fast and efficient evolution of the industry as a whole. One of the most popular advancements for the industry is the use of IoT and telematics to bring fresher, local produce to consumers. This focus on technology utilization has helped these businesses to adapt existing distribution networks to accommodate more localized delivery. This technology will also help to track produce from the source through to the consumer as customers demand to know more about where and how their food was produced. These solutions include WMS, RFID, ERP, manufacturing execution systems ADC devices, temperature recorders and much more. The food supply chain will also begin to utilize rail transport more frequently than ever before. This is thanks to significant infrastructure upgrades such as those completed on the Florida East Coast Railway. Localized delivery will also change and shift towards 3rd party courier services such as UberFresh and UberEATS. These private couriers will focus on D2C delivery in large, densely populated areas like NYC and Boston. Other services such as Blue Apron and Hello Fresh will offer similar D2C delivery and other creative click-to-collect options. With globalization increasing the import and export of food will continue to rise. In order to maintain food inventory integrity many ocean carriers are implementing advanced refrigeration technologies that are more reliable and that release less environment-damaging emissions. All of these improvements will address the factors forcing the evolution of the food supply chain. To learn more about these solutions and more like them contact Datex experts today at marketing@datexcorp.com or 800.933.2839 ext 243.
Phasai Laboratory Co.,Ltd. established on 14 February 2011 and starting as a manufacturer of products for healthy skin by Dermatologist under KIYONO’s brand and also offer OEM service under customer's brand . Our products have been certified by Thai FDA.
WAREHOUSING IN INDIA AND ITS SIGNIFICANCE8902714972
Warehouses are an important part of any supply chain and logistics industry. The Indian warehousing sector is progressively getting redefined from the traditional concept of “Godowns” to modern day setups with automation. Warehousing refers to the activities involving storage of goods on a large-scale in a systematic and orderly manner and making them available conveniently when needed. In other words, warehousing means holding or preserving goods in huge quantities from the time of their purchase or production till their actual use or sale.
Nestlé is a multinational Swiss Company operating in Pakistan through its direct subsidiary Nestlé Pakistan. It has a variety of products including confectionery, cereals, dairy products, bottled water, and so on. Operating in 189 countries; today, Nestlé is one of the world’s most leading company. It aims at enhancing quality of life and contributing to a healthier future. This study analyses their Supply Chain Management of bottled water.
Analysis of enterprise relationships in food industry cluster based on niche ...Agriculture Journal IJOEAR
— In recent years, the Chinese government and local governments in China at all levels actively promote the construction of food industry cluster Demonstration Park. Many problems accompanied with the continuous development of industrial clusters, such as the proliferation of homogeneous enterprises and products, the lack of organic links and symbiosis relationship among enterprises, resource depletion and environmental degradation, triggering niche overlap and vicious competition. All these phenomenon leads to industry cluster an acute shortage power of competitive and innovation. In this paper, we take the livestock and poultry industry cluster as the research object, use niche theory to analyze enterprise niche inclusion, overlap and separation relationships. As well as through the neutral theory in the equilibrium state to explain the cluster of enterprises in the competition, cooperation and symbiotic relationship.
Conférence de l'Union Mondiale des Marchés de Gros le 23 mai à Helsinki : la...Stephane Layani
Stéphane Layani est intervenu à l'occasion de la Conférence de l'Union Mondiale des Marchés de Gros le 23 mai à Helsinki sur le sujet de la qualité dans les Marchés de Gros. Il a présenté ce qu'était la qualité au Marché International de Rungis dans son approvisionnement, ses infrastructures mais également dans le savoir-faire de ses opérateurs
Inventory control a case study with reference to udaipur beverageReeni Das
Inventory control is very important aspect of company through which the excessive as per inventories are kept within the prescribed limits as per the norms fixed by the company & also to work-out ways & means to maintain it through application of various techniques under consideration.
Vertical freezer is a vertical storage unit that resembles an oversized refrigerator unit. Vertical freezers usually have one or two doors, similar to a refrigerator, rather than a single lid that is raised on a chest freezer. A vertical freezer is more useful in case of space constraint. It has vertical shelves, baskets, and door bins, making it easy to find and organize food in the freezer. Probably the best convenience feature of a vertical freezer is its ability to better organize the frozen foods, making it easier to monitor and rotate content to keep frozen foods fresh.
There are a lot of pitfalls that await design researchers and ethnographers when conducting diary studies. Your research project can easily become undone by ignoring simple logistics. This presentation embodies the learnings from multiple diary studies conducted at Different, a user experience consultancy based in Sydney, Australia. It will tell you about the history of diary studies, how to enhance them, how to conduct them, what to do and most importantly what not to do.
For the full blog post go to https://www.eriontheinterweb.com/2011/07/the-dos-and-donts-of-diary-studies/
‘Mobile Diary Studies; capturing in the moment experiences’.User Vision
User Vision: Breakfast Briefing
Presenting the benefits and challenges faced when conducting a mobile diary study, as well as share some top tips for those looking to use the methodology in the future.
The Future of the Food Supply Chain & LogisticsAngela Carver
The future of the food supply chain is unclear as it is in a state of constant change. This is not unusual for supply chain operations as there are many factors driving change. Due to the already global nature of the food supply chain the implications and impact of this change is far reaching. Some of the top factors impacting the food supply chain include: governmental regulation changes, growing customer demand, increasing globalization and rising infrastructure investment. This is leading to a variety of creative solutions that are allowing for the fast and efficient evolution of the industry as a whole. One of the most popular advancements for the industry is the use of IoT and telematics to bring fresher, local produce to consumers. This focus on technology utilization has helped these businesses to adapt existing distribution networks to accommodate more localized delivery. This technology will also help to track produce from the source through to the consumer as customers demand to know more about where and how their food was produced. These solutions include WMS, RFID, ERP, manufacturing execution systems ADC devices, temperature recorders and much more. The food supply chain will also begin to utilize rail transport more frequently than ever before. This is thanks to significant infrastructure upgrades such as those completed on the Florida East Coast Railway. Localized delivery will also change and shift towards 3rd party courier services such as UberFresh and UberEATS. These private couriers will focus on D2C delivery in large, densely populated areas like NYC and Boston. Other services such as Blue Apron and Hello Fresh will offer similar D2C delivery and other creative click-to-collect options. With globalization increasing the import and export of food will continue to rise. In order to maintain food inventory integrity many ocean carriers are implementing advanced refrigeration technologies that are more reliable and that release less environment-damaging emissions. All of these improvements will address the factors forcing the evolution of the food supply chain. To learn more about these solutions and more like them contact Datex experts today at marketing@datexcorp.com or 800.933.2839 ext 243.
Phasai Laboratory Co.,Ltd. established on 14 February 2011 and starting as a manufacturer of products for healthy skin by Dermatologist under KIYONO’s brand and also offer OEM service under customer's brand . Our products have been certified by Thai FDA.
WAREHOUSING IN INDIA AND ITS SIGNIFICANCE8902714972
Warehouses are an important part of any supply chain and logistics industry. The Indian warehousing sector is progressively getting redefined from the traditional concept of “Godowns” to modern day setups with automation. Warehousing refers to the activities involving storage of goods on a large-scale in a systematic and orderly manner and making them available conveniently when needed. In other words, warehousing means holding or preserving goods in huge quantities from the time of their purchase or production till their actual use or sale.
Nestlé is a multinational Swiss Company operating in Pakistan through its direct subsidiary Nestlé Pakistan. It has a variety of products including confectionery, cereals, dairy products, bottled water, and so on. Operating in 189 countries; today, Nestlé is one of the world’s most leading company. It aims at enhancing quality of life and contributing to a healthier future. This study analyses their Supply Chain Management of bottled water.
Analysis of enterprise relationships in food industry cluster based on niche ...Agriculture Journal IJOEAR
— In recent years, the Chinese government and local governments in China at all levels actively promote the construction of food industry cluster Demonstration Park. Many problems accompanied with the continuous development of industrial clusters, such as the proliferation of homogeneous enterprises and products, the lack of organic links and symbiosis relationship among enterprises, resource depletion and environmental degradation, triggering niche overlap and vicious competition. All these phenomenon leads to industry cluster an acute shortage power of competitive and innovation. In this paper, we take the livestock and poultry industry cluster as the research object, use niche theory to analyze enterprise niche inclusion, overlap and separation relationships. As well as through the neutral theory in the equilibrium state to explain the cluster of enterprises in the competition, cooperation and symbiotic relationship.
Conférence de l'Union Mondiale des Marchés de Gros le 23 mai à Helsinki : la...Stephane Layani
Stéphane Layani est intervenu à l'occasion de la Conférence de l'Union Mondiale des Marchés de Gros le 23 mai à Helsinki sur le sujet de la qualité dans les Marchés de Gros. Il a présenté ce qu'était la qualité au Marché International de Rungis dans son approvisionnement, ses infrastructures mais également dans le savoir-faire de ses opérateurs
Inventory control a case study with reference to udaipur beverageReeni Das
Inventory control is very important aspect of company through which the excessive as per inventories are kept within the prescribed limits as per the norms fixed by the company & also to work-out ways & means to maintain it through application of various techniques under consideration.
Vertical freezer is a vertical storage unit that resembles an oversized refrigerator unit. Vertical freezers usually have one or two doors, similar to a refrigerator, rather than a single lid that is raised on a chest freezer. A vertical freezer is more useful in case of space constraint. It has vertical shelves, baskets, and door bins, making it easy to find and organize food in the freezer. Probably the best convenience feature of a vertical freezer is its ability to better organize the frozen foods, making it easier to monitor and rotate content to keep frozen foods fresh.
There are a lot of pitfalls that await design researchers and ethnographers when conducting diary studies. Your research project can easily become undone by ignoring simple logistics. This presentation embodies the learnings from multiple diary studies conducted at Different, a user experience consultancy based in Sydney, Australia. It will tell you about the history of diary studies, how to enhance them, how to conduct them, what to do and most importantly what not to do.
For the full blog post go to https://www.eriontheinterweb.com/2011/07/the-dos-and-donts-of-diary-studies/
‘Mobile Diary Studies; capturing in the moment experiences’.User Vision
User Vision: Breakfast Briefing
Presenting the benefits and challenges faced when conducting a mobile diary study, as well as share some top tips for those looking to use the methodology in the future.
This paper discusses fundamental issues in dairy logistics in a tutorial format. We summarize findings of more than twenty student groups who carried out independent literature surveys and interviewed professionals in the industry. The critical issues in carrying out dairy products logistics, the logistics strategies
that are employed by dairy producers in the world and some newly introduced products in the industry and in what ways the introduction of these new products changes the logistics operations are pointed out. The importance of hygiene, cooling, time, humidity, cost, distance, flexibility and meeting the demand is emphasized under the subtitle of critical issues. Except those critical issues, there are some others like short shelf life, quality, emulsion, pasteurization, UHT which depend on the characteristics of the milk and milk products. Logistics strategies in dairy industry are studied by dividing it into two subtitles: the ones that are used in the world and the ones in Turkey. A benchmarking between Turkey and the world is also included at the end. As the variety of milk and milk products increase day by day, the new ingredients of new products also affects the transportation plans. Those impacts are also discussed as a part of our paper. Some descriptive drawings and figures are also embodied. Throughout this paper, only the
production, warehousing and transportation of milk, cheese, yoghurt, and similar dairy products are discussed. Ice-cream especially is set out of the scope as it completely differs from actual dairy products as milk, cheese and yoghurt in the means of production and distribution.
http://research.sabanciuniv.edu.
Consumer Attitude towards Dairy Products – An Empirical Study in Erode DistrictDr. Amarjeet Singh
The dairy industry is one of the most important components of the world food system, and is undergoing dramatic change at the current time. It is highly probable that within ten years, the global dairy industry will be scarcely recognizable from its current form. So, attitudinal changes of consumers also vary in the past 2 decades. Attitude of the consumers will continuously change owing to the technological research and innovation in the dairy industry. So, this research emerged and aimed to examine the consumer attitude towards dairy products in Erode district of Tamilnadu, India. Because Erode district shows its more involvement in agriculture along with dairy products. The researcher has selected 132 consumers who have using the dairy products in different way of usage like milk, butter, butter milk, ghee, palkova, etc. The changes in their attitude would find from a structured questionnaire which consists of demographic and usage of dairy products, and their attitude on dairy products. The collected data were subdued into tables and charts with the help of MS-excel and SPSS 22.0. This research has found the results as most of the respondents were urban area consumers of dairy products, purchasing frequently Aavin products and they were using dairy products for 5 to 10 years in the study area.
Shelf life enhancement of milk products.Gail Barnes
While thermal processes such as pasteurization, UHT, and sterilization have a long history of use and are well defined by regulators, there is no similar definition of ESL milk products, and the methods that can be used in ESL milk processing operations. This article by Dr Tatiana Koutchma and Dr Gail Barnes in IFT's Food Technology journal focuses on various treatments for chilled distribution and the way in which new nonthermal UV (ultraviolet) treatment can improve the microbiological quality of both raw and pasteurized milk.
"""Plant-based milk, derived from sources like almonds, soy, oats, and coconuts, offers a nutritious and cruelty-free alternative to traditional dairy. Rich in vitamins and minerals, it caters to diverse dietary preferences while promoting sustainability and environmental well-being.""
""Ghee processing involves the meticulous clarification of butter, separating the milk solids and water to leave behind pure, golden clarified butter. This traditional method enhances the flavor, extends shelf life, and makes ghee a versatile and prized ingredient in culinary applications.""
Read the complete article along with up-to-date articles, Industry buzz, and fun facts on the Food & Beverage industry with PMG's weekly
#FoodTech #IndustryInsights"
"During milk reception, tankers or cans of milk may be used to transport it to the dairy or milk plant. To ensure a steady supply of milk to the pasteurizing equipment, the milk in these containers needs to be graded, emptied, measured by weight or volume, sampled, and bulked.
Pulsed electric fields PEF is a non-thermal method of food preservation. It not only inactivates bacteria at low temperatures but also affects minimally the nutritional and sensory properties of the food product.
Exploring the Latest Innovations and Breakthroughs in the World of F&B industry, continue reading these topics along with Industry Buzz, weekly highlights, and fun facts in this week's edition of Tech-knowledge."
According to Renub Research latest report, “Refrigerated Transport Market, Global Forecast 2023-2028, Industry Trends, Growth, Insight, Impact of Inflation, Company Analysis” Refrigerated Transport Market is expected to grow with a CAGR of 6.37% from 2022 to 2028.
Document content PESTAL and SWOT analysis of NESTLE with examples and detailed analytics. #PESTAL #SWOT #NESTLE
Useful for education. Content is from different verified websites.
Rule-based expert systems for supporting university studentsertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/rule-based-expert-systems-for-supporting-university-students/
There are more than 15 million college students in the US alone. Academic advising for courses and scholarships is typically performed by human advisors, bringing an immense managerial workload to faculty members, as well as other staff at universities. This paper reports and discusses the development of two educational expert systems at a private international university. The first expert system is a course advising system which recommends courses to undergraduate students. The second system suggests scholarships to undergraduate students based on their eligibility. While there have been reported systems for course advising, the literature does not seem to contain any references to expert systems for scholarship recommendation and eligibility checking. Therefore the scholarship recommender that we developed is first of its kind. Both systems have been implemented and tested using Oracle Policy Automation (OPA) software.
Optimizing the electric charge station network of EŞARJertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/optimizing-the-electric-charge-station-network-of-esarj/
In this study, we adopt the classic capacitated p-median location model for the solution of a network design problem, in the domain of electric charge station network design, for a leading company in Turkey. Our model encompasses the location preferences of the company managers as preference scores incorporated into the objective function. Our model also incorporates the capacity concerns of the managers through constraints on maximum number of districts and maximum population that can be served from a location. The model optimally selects the new station locations and the visualization of model results provides additional insights.
Competitiveness of Top 100 U.S. Universities: A Benchmark Study Using Data En...ertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/benchmark-study-using-data-envelopment-analysis/
This study presents a comprehensive benchmarking study of the top 100 U.S. Universities. The methodologies used to come up with insights into the domain are Data Envelopment Analysis (DEA) and information visualization. Various approaches to evaluating academic institutions have appeared in the literature, including a DEA literature dealing with the ranking of universities. Our study contributes to this literature by the extensive incorporation of information visualization and subsequently the discovery of new insights.
Industrial Benchmarking through Information Visualization and Data Envelopmen...ertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/industrial-benchmarking-through-information-visualization-and-data-envelopment-analysis-a-new-framework/
We present a benchmarking study on the companies in the Turkish food industry based on their financial data. Our aim is to develop a comprehensive benchmarking framework using Data Envelopment Analysis (DEA) and information visualization. Besides DEA, a traditional tool for financial benchmarking based on financial ratios is also incorporated. The consistency/inconsistency between the two methodologies is investigated using information visualization tools. In addition, k-means clustering, a fundamental method from machine learning, is applied to understand the relationship between k-means clustering and DEA.
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/modelling-the-supply-chain-perception-gaps/
This study applies the research of perception gap analysis to supply chain integration and develops a generic model, the 3-Level Gaps Model, with the goal of contributing to harmonization and integration in the supply chain. The model suggests that significant perception gaps may exist among supply chain members with regards to the importance of different performance criteria. The concept of the model is conceived through an empirical and inductive approach, combining the research discipline of supply chain relationship and perception gap analysis. First hand data has been collected through a survey across a key buyer in the motor insurance industry and its eight suppliers. Rigorous statistical analysis testified the research hypotheses, which in turn verified the validity and relevance of the developed 3-Level Gaps Model. The research reveals the significant existence of supply chain perception gaps at all three levels as defined, which could be the root-causes to underperformed supply chain.
Risk Factors and Identifiers for Alzheimer’s Disease: A Data Mining Analysisertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/risk-factors-and-identifiers-for-alzheimers-disease-a-data-mining-analysis/
The topic of this paper is the Alzheimer’s Disease (AD), with the goal being the analysis of risk factors and identifying tests that can help diagnose AD. While there exists multiple studies that analyze the factors that can help diagnose or predict AD, this is the first study that considers only non-image data, while using a multitude of techniques from machine learning and data mining. The applied methods include classification tree analysis, cluster analysis, data visualization, and classification analysis. All the analysis, except classification analysis, resulted in insights that eventually lead to the construction of a risk table for AD. The study contributes to the literature not only with new insights, but also by demonstrating a framework for analysis of such data. The insights obtained in this study can be used by individuals and health professionals to assess possible risks, and take preventive measures.
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/text-mining-with-rapidminer/
The goal of this chapter is to introduce the text mining capabilities of RAPIDMINER through a use case. The use case involves mining reviews for hotels at TripAdvisor.com, a popular web portal. We will be demonstrating basic text mining in RAPIDMINER using the text mining extension. We will present two different RAPIDMINER processes, namely Process01 andProcess02, which respectively describe how text mining can be combined with association mining and cluster modeling. While it is possible to construct each of these processes from scratch by inserting the appropriate operators into the process view, we will instead import these two processes readily from existing model files. Throughout the chapter, we will at times deliberately instruct the reader to take erroneous steps that result in undesired outcomes. We believe that this is a very realistic way of learning to use RAPIDMINER, since in practice, the modeling process frequently involves such steps that are later corrected.
Competitive Pattern-Based Strategies under Complexity: The Case of Turkish Ma...ertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/competitive-pattern-based-strategies-under-complexity-the-case-of-turkish-managers/
This paper aims to augment current Enterprise Architecture (EA) frameworks to become pattern-based. The main motivation behind pattern-based EA is the support for strategic decisions based on the patterns prioritized in a country or industry. Thus, to validate the need for pattern-based EA, it is essential to show how different patterns gain priority under different contexts, such as industries. To this end, this chapter also reveals the value of alternative managerial strategies across different industries and business functions in a specific market, namely Turkey. Value perceptions for alternative managerial strategies were collected via survey, and the values for strategies were analyzed through the rigorous application of statistical techniques. Then, evidence was searched and obtained from business literature that support or refute the statistically-supported hypothesis. The results obtained through statistical analysis are typically confirmed with reports of real world cases in the business literature. Results suggest that Turkish firms differ significantly in the way they value different managerial strategies. There also exist differences based on industries and business functions. Our study provides guidelines to managers in Turkey, an emerging country, on which strategies are valued most in their industries. This way, managers can have a better understanding of their competitors and business environment, and can develop the appropriate pattern-based EA to cope with complexity and succeed in the market.
Supplier and Buyer Driven Channels in a Two-Stage Supply Chainertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/supplier-and-buyer-driven-channels-in-a-two-stage-supply-chain/
We explore the impact of power structure on price, sensitivity of market price, and profits in a two-stage supply chain with single product, supplier and buyer, and a price sensitive market. We develop and analyze the case where the supplier has dominant bargaining power and the case where the buyer has dominant bargaining power. We consider a pricing scheme for the buyer that involves both a multiplier and a markup. We show that it is optimal for the buyer to set the markup to zero and use only a multiplier. We also show that the market price and its sensitivity are higher when operational costs (namely distribution and inventory) exist. We observe that the sensitivity of the market price increases non-linearly as the wholesale price increases, and derive a lower bound for it. Through experimental analysis, we show that marginal impact of increasing shipment cost and carrying charge (interest rate) on prices and profits are decreasing in both cases. Finally, we show that there exist problem instances where the buyer may prefer supplier-driven case to markup-only buyer-driven and similarly problem instances where the supplier may prefer markup-only buyer-driven case to supplier-driven.
Simulation Modeling For Quality And Productivity In Steel Cord Manufacturingertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/simulation-modeling-for-quality-and-productivity-in-steel-cord-manufacturing/
We describe the application of simulation modeling to estimate and improve quality and productivity performance of a steel cord manufacturing system. We describe the typical steel cord manufacturing plant, emphasize its distinguishing characteristics, identify various production settings and discuss applicability of simulation as a management decision support tool. Besides presenting the general structure of the developed simulation model, we focus on wire fractures, which can be an important source of system disruption.
Visual and analytical mining of transactions data for production planning f...ertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/visual-and-analytical-mining-of-sales-transaction-data-for-production-planning-and-marketing/
Recent developments in information technology paved the way for the collection of large amounts of data pertaining to various aspects of an enterprise. The greatest challenge faced in processing these massive amounts of raw data gathered turns out to be the effective management of data with the ultimate purpose of deriving necessary and meaningful information out of it. The following paper presents an attempt to illustrate the combination of visual and analytical data mining techniques for planning of marketing and production activities. The primary phases of the proposed framework consist of filtering, clustering and comparison steps
implemented using interactive pie charts, K-Means algorithm and parallel coordinate plots respectively. A prototype decision support system is developed and a sample analysis session is conducted to demonstrate the applicability of the framework.
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/a-tutorial-on-crossdocking/
In crossdocking, the inbound materials coming in trucks to the crossdock facility are directed to outbound doors and are directly loaded into trucks that will perform shipment, or are staged for a very brief time period before loading. Crossdocking has a great potential to bring savings in logistics: For example, most of the logistics success of Wal-Mart, the world’s leading retailer, is attributed to crossdocking.In this paper,the types of crossdocking are identified, the situations and industries where crossdocking is applicable are explained, prerequisites, advantages and drawbacks are listed, and implementation issues are discussed. Finally a case study that describes the crossdocking applications of a 3rd party logistics firm is presented.
Application Of Local Search Methods For Solving A Quadratic Assignment Probl...ertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/application-of-local-search-methods-for-solving-a-quadratic-assignment-problem-a-case-study/
This paper discusses the design and application of local search methods to a real-life application at a steel cord manufacturing plant. The case study involves a layout problem that can be represented as a Quadratic Assignment Problem (QAP). Due to the nature of the manufacturing process, certain machinery need to be allocated in close proximity to each other. This issue is incorporated into the objective function through assigning high penalty costs to the unfavorable allocations. QAP belongs to one of the most difficult class of combinatorial optimization problems, and is not solvable to optimality as the number of facilities increases. We implement the well-known local search methods, 2-opt, 3-opt and tabu search. We compare the solution performances of the methods to the results obtained from the NEOS server, which provides free access to many optimization solvers on the internet.
Financial Benchmarking Of Transportation Companies In The New York Stock Exc...ertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/financial-benchmarking-of-transportation-companies-in-the-new-york-stock-exchange-nyse-through-data-envelopment-analysis-dea-and-visualization/
In this paper, we present a benchmarking study of industrial transportation companies traded in the New York Stock Exchange (NYSE). There are two distinguishing aspects of our study: First, instead of using operational data for the input and the output items of the developed Data Envelopment Analysis (DEA) model, we use financial data of the companies that are readily available on the Internet. Secondly, we visualize the efficiency scores of the companies in relation to the subsectors and the number of employees. These visualizations enable us to discover interesting insights about the companies within each subsector, and about subsectors in comparison to each other. The visualization approach that we employ can be used in any DEA study that contains subgroups within a group. Thus, our paper also contains a methodological contribution.
Optimizing Waste Collection In An Organized Industrial Region: A Case Studyertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/optimizing-waste-collection-in-an-organized-industrial-region-a-case-study/
In this paper we present a case study which involves the design of a supply chain network for industrial waste collection. The problem is to transport metal waste from 17 factories to containers and from containers to a disposal center (DC) at an organized region of automobile parts suppliers. We applied the classic mixed-integer programming (MIP) model for the two-stage supply chain to the solution of this problem. The visualization of the optimal solution provided us with several interesting insights that would not be easily discovered otherwise.
Demonstrating Warehousing Concepts Through Interactive Animationsertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/demonstrating-warehousing-concepts-through-interactive-animations/
In this paper, we report development of interactive computer animations to demonstrate warehousing concepts, providing a virtual environment for learning. Almost every company, regardless of its industry, holds inventory of goods in its warehouse(s) to respond to customer demand promptly, to coordinate supply and demand, to realize economies of scale in manufacturing or processing, to add value to its products and to reduce response time. Design, analysis, and improvement of warehouse operations can yield significant savings for a company. Warehousing science can be considered as an important field within the industrial engineering discipline. However, there is very little educational material (including web based media), and only a handful of books available in this field. We believe that the animations that we developed will significantly contribute to the understanding of warehousing concepts, and enable tomorrow’s practitioners to grasp the fundamentals of managing warehouses.
A Framework for Visualizing Association Mining Resultsertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/a-framework-for-visualizing-association-mining-results/
Association mining is one of the most used data mining techniques due to interpretable and actionable results. In this study we pro-pose a framework to visualize the association mining results, speci¯cally frequent itemsets and association rules, as graphs. We demonstrate the applicability and usefulness of our approach through a Market Basket Analysis (MBA) case study where we visually explore the data mining results for a supermarket data set. In this case study we derive several
interesting insights regarding the relationships among the items and sug-gest how they can be used as basis for decision making in retailing.
Application of the Cutting Stock Problem to a Construction Company: A Case Studyertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/application-of-the-cutting-stock-problem-to-a-construction-company-a-case-study/
This paper presents an application of the well-known cutting stock problem to a construction firm. The goal of the 1Dimensional (1D) cutting stock problem is to cut the bars of desired lengths in required quantities from longer bars of given length. The company for which we carried out this study encounters 1D cutting stock problem in cutting steel bars (reinforcement bars) for its construction projects. We have developed several solution approaches to solving the company’s problem: Building and solving an integer programming (IP) model in a modeling environment, developing our own software that uses a mixed integer programming (MIP) software library, and testing some of the commercial software packages available on the internet. In this paper, we summarize our experiences with all the three approaches. We also present a benchmark of existing commercial software packages, and some critical insights. Finally, we suggest a visual approach for increasing performance in solving the cutting stock problem and demonstrate the applicability of this approach using the company’s data on two construction projects.
Benchmarking The Turkish Apparel Retail Industry Through Data Envelopment Ana...ertekg
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/benchmarking-the-turkish-apparel-retail-industry-through-data-envelopment-analysis-dea-and-data-visualization/
This paper presents a benchmarking study of the Turkish apparel retailing industry. We have applied the Data Envelopment Analysis (DEA) methodology to determine the efficiencies of the companies in the industry. In the DEA model the number of stores, number of corners, total sales area and number of employees were included as inputs and annual sales revenue was included as the output. The efficiency scores obtained through DEA were visualized for gaining insights about the industry and revealing guidelines that can aid in strategic decision making.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
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1. Gözegir, N., Ertek, G., Büyüközkan, G. (2008) “Dairy logistics: a tutorial” . CELS 2008,
Jönköping, Sweeden. (presented by Nilay Gözegir).
Note: This is the final draft version of this paper. Please cite this paper (or this final draft) as
above. You can download this final draft from http://research.sabanciuniv.edu.
DAIRY LOGISTICS: A TUTORIAL
Nilay Gözegir, Gürdal Ertek and Gülçin Büyüközkan
Abstract This paper discusses fundamental issues in dairy logistics in a tutorial
format. We summarize findings of more than twenty student groups who carried
out independent literature surveys and interviewed professionals in the industry.
The critical issues in carrying out dairy products logistics, the logistics strategies
that are employed by dairy producers in the world and some newly introduced
products in the industry and in what ways the introduction of these new products
changes the logistics operations are pointed out. The importance of hygiene,
cooling, time, humidity, cost, distance, flexibility and meeting the demand is
emphasized under the subtitle of critical issues. Except those critical issues, there
are some others like short shelf life, quality, emulsion, pasteurization, UHT which
depend on the characteristics of the milk and milk products. Logistics strategies in
dairy industry are studied by dividing it into two subtitles: the ones that are used
in the world and the ones in Turkey. A benchmarking between Turkey and the
1
2. world is also included at the end. As the variety of milk and milk products increase
day by day, the new ingredients of new products also affects the transportation
plans. Those impacts are also discussed as a part of our paper. Some descriptive
drawings and figures are also embodied. Throughout this paper, only the
production, warehousing and transportation of milk, cheese, yoghurt, and similar
dairy products are discussed. Ice-cream especially is set out of the scope as it
completely differs from actual dairy products as milk, cheese and yoghurt in the
means of production and distribution.
Keywords Dairy Industry, Dairy Logistics, Cross docking, Direct Shipment, Raw
Milk, Warehousing
INTRODUCTION
As the producing lines of dairy products increase daily, the logistics of milk, cheese and yoghurt-
like products continues to gain more importance. To plan a better transportation system of
those products, the first step might include analyzing the market and finding already made
approaches. Dairy products have a life time of production, warehousing and transportation
which is in the following phases: collecting the raw milk, warehousing it in a dairy plant,
bringing it to the retailer and selling it to the customer. Those steps acquire a special
conditioned journey, as dairy products have characteristics different from those of other food
products. Freshness, for example, is very significant for the dairy products’ perish ability and
requires a temperature sensitive system. That temperature sensitive system will create a proper
cold environment, but on the other hand, it will necessitate timing and cost. So the aim might be
decreasing the operation, distribution, and transportation costs, utilizing the raw material,
increasing the market share, and profits of dairy products while meeting the expected customer
demand.
The Turkish Ministry of Agriculture claims that a person should consume everyday at least 1
liter of milk or a dairy equivalent [1]. As milk and milk products are greatly significant for people
because they are rich in protein and vitamins, the logistics of dairy products gains importance.
Both dairy product producers and their logistics firms want to have an arrangement that will
create benefits for both sides. Despite the real problem of dairy industrial firms in finding the
optimized logistic network, other kinds of issues are also applicable to operations research
2
3. branch. This utilization by operations research has created great savings for the dairy product
producing firms as only buying one of the already constructed software packages will be
sufficient. For these reasons, in this paper, this subject will be studied under three main
categories in details.
ISSUES IN DAIRY LOGISTICS
What are the Most Critical Issues in Carrying out Dairy Products Logistics?
The main aim in the logistics of dairy products is to enable a high standard of qualified, fresh
products with a limited shelf-life. The best time for delivery of perishable products is at most 11
days as the key challenge is maximizing the remaining shelf-life [2]. Thus, an effective logistics
strategy for dairy products must face critical issues that consider the shortest time, the freshest
products, the least cost for transportation and the most utilized customers whom demands are
met. Daily transporting of dairy products is one way to keep food fresh. Unless the time that is
spent between collections and selling is short enough, quality problems may occur. The
possibility for fat and proteins in the milk’s breaking down after 48-72 hours will lead to
bacteria reproduction below certain temperatures [3]. In conclusion, the dairy producers and
retailers obviously are in the need of logistics firms that will care about the special needs and
problems in their working environment, mind the customers’ needs and act accordingly. At that
point, the transportations system will be customized and rearranged according to the particular
dairy firm’s requirements.
Implementing dairy products logistics requires consideration of some critical issues as listed as
below.
Cleanliness and Hygiene: Milk production is done under hygienic environment to
enable a superior quality. Actual hygiene is divided into three distinct groups: physical, chemical
and microbiological hygiene. Physical hygiene is facilitated according to density, freezing point,
osmotic pressure and acidity of the milk or dairy product. The solution is neutrality; meaning
that having a pH around 7, is significant. Chemical hygiene depends on the product’s
transportation and storage. There is a possibility of having oxidation/breakdown of the fat and
protein in the milk or dairy product, so protecting the food from oxygen and direct sunlight is
really important in the transportation and storage of milk and dairy products. The last kind of
hygiene is microbiological and consists of a temperature critical issue which prevents
microbiological reproduction [4]. A precaution that can be done in this case is consciously
3
4. choosing the material of milk containers used for transportation. The material might be one that
is effortless to wash, clean and antisepticise; rustproof and doesn’t displace any substance to the
milk. [5]. In the Philippines, they use wood, metal or thermoplastic solids to surround the fresh
dairy products in the vehicle that transports the dairy product. [6]. On the other hand, if the
vehicle doesn’t have any cooling system, the pasteurized, fresh milk is placed in isolated boxes
which have ice packets around. A firm referenced by Nestle about professionalism in Material
Handling Automation advises an overhead monorail system. The overhead monorail system is
able to transport the dairy food from production to distribution centers with pallet
transportation. This monorail system seems to be suitable and advantageous because they are
not floor mounted and this makes the ordinary cleaning of the floor much less problematic [7].
Cooling and Temperature: As temperature is a significant effective on the
reproduction of bacteria, the control of milk’s temperature is a critical issue in dairy logistics.
Bacterial spoilage can be prevented by controlling the existing temperature. For controlling the
temperature of the environment of dairy food, proper cooling systems are obviously needed.
Time: Time is the third section of the most important critical issues list that contains
hygiene and temperature, because with time there is likeliness for bacterial spoilage or non-
freshness of a dairy product. That is why there are batch numbers and best before dates for each
product. For maximizing the delivery of perfect products to the customers, the best before dates
and batch numbers should be cautiously scrutinized.
Humidity: Humidity is another significant environmental characteristic for high-
qualified milk production. Sometimes air might not be appropriate for milk transportation
because of being too moist or dry. Moist or dry air has the probability to create a suitable
condition for bacteria and other germ reproduction. However, maintaining proper air
circulation inside the transportation vehicle and the needed humidity is not so easy. Actually,
the trucks are constructed in such a way to let in the air flow. With the air flow, the vehicle will
then have the requisite condition.
Cost: Cost is not exactly effective factor on dairy product freshness but very much so on
the profit. The transportation cost, the loss from dairy products remaining after best before
dates, the refrigeration cost-- all effects the entire cost manner of logistics of dairy products. The
transporting cost is about 25% of total production cost of a dairy product in the USA [8].
According to this high percentage, different solutions for decreasing the cost of transportation
are tried to be found. One way is reducing the frequency of gathering milk from producers.
Another is reducing the transportation cost from delivery to central depots. Actually, the main
challenge of having depots is decreasing the transporting cost of milk and milk products.
4
5. Distance: Distance is a supplementary, but critical issue according to time and cost,
because time is important for the product’s transportation as it has to meet a specific best before
date and cost is also significant as the amount that perishes before purchase returns to the dairy
firm as a loss in that term. Thus, transportation communications are effective on the firm’s
profit.
Flexibility: Flexibility and throughput are also critical issues under the specific times.
As one can have less and the other one more demand in the consecutive period of time, the
logistics firm should be reasonable and easily adapted to the new demand.
Meeting demand: After the flexibility issue, meeting demand shares great importance
as the utilization of customers has high vitality. If the customer satisfaction is relatively low, the
firm will lose customers and sales.
Since dairy products have short shelf life and some best before dates to be projected, forecasting
becomes more critical in the dairy firms’ operation. Because a better forecasting system brings
greater efficiency in inventory holding, more utilization of machines will result in a high
increases in firm profits. Besides forecasting, packaging is another essential issue in dairy
production because packages have a crucial role on keeping the milk fresh for a long time. Last,
according to the critical issues listed above, transportation vehicles should be designed or
chosen according to those properties’ availabilities. The trucks should be able to provide needed
equipment for making the existing properties remain from collection to retailing time, but those
changes are expensive and the most cost-effective ones are always best for dairy firms.
Critical Issues Related with the Characteristics of Dairy Products
According to milk’s chemical content, it is a product that spoils easily. It should be consumed
closest after placement on market shelves. Before it takes its place on the shelves, milk should
be kept and carried in fairly low temperature to avoid perishing before its best before date. It is
a difficult process for retailers to keep dairy products on a specific desired level. The reason for
this difficulty obviously relates to the short time for storage and hygiene. However, only some
establish cold chains for the transportation of raw milk from villages. The fact that not all firms
establish cold chains is due to the high costs of establishing and maintaining cold chains for
dairies. However, milk and its constituents are able to create a suitable environment for the
micro-organisms inside the food to reproduce and increase. Some micro-organisms already
exist in the milk but their reproduction does not start immediately after the milking process
finishes. Hence it is required to instantly cool the milk and checking the amount of micro-
organisms will be helpful afterwards. Normally, there are around 103 and 105 antibodies per ml
5
6. in the milk and that kind of milk can be protected for 2 days when the temperature is around 4
Celsius. When the number of antibodies is more than 106, that milk is called low quality milk
and not suitable for use. When antibodies are around 103 and 105 and 2 days pass, there are two
kinds of change. One is caused by the microorganisms in the milk and the other one by
chemical changes [9]. Those changes may have different reasons to occur. One is about the
internal conditions of the food such as pH, and the other is chemical conditions of the food such
as temperature, level of oxygen in the atmosphere and humidity [9]. There are a few
characteristics of dairy products that affect their logistics :
Short Shelf Life: As the dairy products do not have ability to long last because of its
chemical ingredients, these products should be delivered and consumed in a short period of
time.
Quality: The quality of dairy products depends on some known, accepted standards. Those
standards are considering the cooling of the milk on farms and the microbiological contents of
the milk. Quality is a significant aspect of milk’s long lastingness, as it is mentioned that poor
quality and controlling enables the pasteurized milk to last for only three days [10]. Therefore,
this kind of milk should be transported in the fastest way, in order not to perish.
Emulsion: Milk is actually a kind of emulsion constructed from little fat drops inside water.
There is a thin protein layer in the milk and when heated, a thin coating is created. That is
because of protein coagulation in the milk which can be avoided by agitation to milk.
It is obvious that dairy products can become easily corrupted. There are some ways to longer
their qualified periods. Two are pasteurization and UHT (Ultra High Temperature) processes.
Pasteurization: Pasteurization is cleaning the harmful bacteria off the food by heating it to a
specific temperature. The limit temperature is the one that will not affect the proteins inside
the food. When the food is heated till the limit temperature, some harmful bacteria will begin to
thicken their cell walls and some will become spores to protect themselves. Then at that point
the food is immediately cooled. The bacteria prepared for the hot environment cannot do
transduction and their cell walls break down while they die [11]. Generally, pasteurization is a
process to create healthy food, but it is important to keep the food at constant refrigeration
such as some degree about 8 Celsius after the pasteurization process.
UHT: The best way for keeping dairy food fresh and unthreatened is the cold chain. The cold
chain implies “Afford to keep dairy products between 0o C and 4 o C during the process of
production, transportation, sales and storage.” [12]. In spite of pasteurized milk that is more
perishable and a cooling required food, UHT milk is able to stay fresh from up to 6 months
6
7. without any temperature requirements [13]. The substructure of UHT is cleaning the bacteria
off the raw milk and filling the cleaned milk in pre-cleaned packages. One more UHT cleaning
step is sterilization. Milk pasteurized over 135 o C will have a much longer shelf-life even when
the package is subjected to fairly hot temperatures. There are pasteurization and
homogenization phases throughout UHT processing. There are many advantages of UHT such
as:
1. High quality: Decreasing the concocting time by increasing the temperature to high values
and immediately decreasing it makes firms offer better quality products.
2. Long shelf-life: UHT enables 6 month duration shelf lives for dairy products without any
cooling. This opportunity makes more flexible logistics of dairy products [14].
3. Packaging size: There is no necessity to use a specific package as processing of UHT has
anything to do with container size. This actually allows producers to fill huge containers.
4. Cheaper packaging: Packaging, storing and transporting UHT processed dairy products are
simply much cheaper than other strategies [15]. UHT is done with special carton packages, and
thus packaging becomes cheaper. Glass bottles have relatively high costs and are mainly used
for delivering pasteurized milk [14].
As dairy products can be grouped into pasteurized and UHT processed, their transportation
from factories to demand points differ. As expected, the fresh milk transportation requires
much more interest than does UHT milk does, fresh milk is transported in frigo trucks that are
specially cooled vehicles as there is a specific value of temperature to be met.
To summarize, milk can be brought to the dairy plant in 3 possible ways, as illustrated in
Figure 1:
1. Cooled collection centers
2. Un cooled collection centers
3. Farmers bringing their milk directly to the dairy plant.
7
8. FIGURE 1
Different ways of transporting raw milk
Dairy and Other Retail Products Differences
Dairy products are perishable and need special care while transportation. For example, the
milk that will be carried cannot be collected from all different producers as it will significantly
consume too much time to visit each producer and take milk. On the other hand, the quality of
produced milk differs from one other, so they should not be carried together in the same truck.
As a result, in each transporting procedure large amounts of milk are carried to a distinct
number of central depots that belong to dairy retailers. In conclusion, the simple logistics of
milk are between factory and central depots. This one-to-one transportation of dairy products is
called direct shipment. These directly shipped products are under significant observation as
usually they are controlled by a temperature monitoring system put inside the truck. This
system is able to keep all the temperature data during transportation and locates the problems
at accurate times. Consequently, they are always capable of avoiding spoilage and its probable
costs.
On the other hand, for products apart from dairies, direct shipment is not a usual choice to
transport nonperishable products. Warehouse storing is an important preference in those kinds
8
9. as the shelf lives of them are not even a problem. Detergents as being storable products can be
carried with warehousing strategy. Besides, the non-perishable products such as beans or beer
can be carried by using cross-docking strategy. Even around a year is suitable for non-
perishable products not to decay.
To sum up, the differentiated term in the dairy product transportation is in the means of
conditions and amount of costs. These conditions affect retailers as they are never able to keep
dairy products in warehouses. This means dairy products can never be kept as safety stock
during either in raw milk collection or at the dairy plant and safety stock which is the amount
that is stocked in the warehouses is not possible for dairies. Although safety stock provides
always the relevant amount and is a way to increase the service excellence to customer, in dairy
products that is not possible as no warehousing occurs [16].
LOGISTIC STRATEGIES IN THE DAIRY INDUSTRY
World-wide Logistics Strategies by Dairy Producers
Supply Chain is an important branch that starts with the production and ends with distribution.
There are three main transporting strategies that are warehousing (Figure 2), direct shipment
(Figure 3) and cross docking (Figure 4). Warehousing is storing goods for a specific time
throughout the entire transportation process. This strategy involves a special procedure where
the product is taken back and prepared for packaging and being sent to customers. Cross
docking is the newly introduced and mostly chosen way. It is again a method that concerns
storing, but when it is compared to the warehousing, the storing period is much less. It is
typically around 1 day, but there are times when it is less than one hour. Direct shipment
strategy is directly transporting products from plants to retailers [17].
9
10. FIGURE 2 FIGURE 3
Transportation with Warehousing Transportation by Direct Shipment
Generally speaking, countries around the world use warehousing and direct shipment as cross
docking is a newly introduced term. In spite of regulations that restrict selling milk without
pasteurization, farmers in some countries continue to sell unhealthy milk firsthand. Kenya is a
good example of that kind of country. Farmers in Kenya are used to this kind of distribution
as they earn more revenue by this kind of selling because of the customers’ unwillingness to buy
high priced dairy products [18]. Except for Kenya’s people’s contravention against high-priced
milk, India does not have a well-developed healthy system for keeping raw milk because the
plants are very far from collection centers. The long distance is the reason that Kenya’s
government collects raw milk twice a day. For solving this problem, either cooling basic facilities
might be introduced or collection centers should be placed near farms [19]. On the other hand,
in Mexico and India, attempts to introduce a new strategy to be introduced for selling the milk
are based on automatic vending machines that do not even require packaging. Because this
strategy allows customers to come to vending machine and get their own milk, this practice is
beneficial for the firms as they are not spending any money for packaging [20].
In general, countries prefer the much cheaper direct shipment and cross docking strategies
instead of classical warehousing.
A large number of the dairy producers exploit third party firms for the logistics of their products
as accomplishing all transportation activities with actual processes would be difficult. Such
outsourcing can significantly decrease the costs of transportation, and the firms can concentrate
on their core competencies.
10
11. FIGURE 4 FIGURE 5
Transportation by Cross docking Consumption of Milk in Turkey
Logistics Strategies Employed by Dairy Producers in Turkey
The strategies used in Turkey are analogous to the worldwide strategies.
At first, as the demand for dairy products was not so high, the usage of cross docking method
was not high either. On the other hand, cross docking has been newly introduced in the big cities
such as Istanbul, Ankara or Izmir as they are the ones with higher demand. Opposite to that,
direct shipment is a broadly used strategy because there are many local producers around
Turkey who usually prefer distributing their products directly to demand spots.
Warehousing is another unpopular way for transporting dairies in Turkey. The giant worth of
having a warehouse disables firms from using the warehousing strategy.
The number of big companies is fairly less than the number of local ones. Regarding that the
local ones do not prefer to use warehouses as much as big companies do, it would be said that
the demand for warehousing also decreases.
The dairy industrial firms in Turkey can simply be divided in two: professional companies and
small dairy barns. Professional companies prefer to use logistics methods employed worldwide
with novel technological machinery and large production. On the other hand, there are small
dairy barns that work with the neighborhood grocery in a small informal distribution channel
[21]. Apart from these strategies, there are various distribution channels for all of the dairy
producers. Despite the existence of distribution channels, the geographical structure is
11
12. particularly harsh in eastern Turkey. That can be one reason why companies use their own
trucks for transportation as they are concerned about the quality of dairies.
Also optimization is not occurring in the self-transporting dairy firms as there are not enough
experienced workers and professional firms. In comparison, the 3PL (third party logistics) users
are professional firms which work with known brands. These kind of dairy firms bargain with
that professional transportation firms which take their job seriously.
Differences between Logistics Strategies in the World and Turkey
There are many differences between Turkey and other countries around the world regarding
dairy logistics. The top rated companies usually use cross docking strategy as long as the newly
introduced information technology systems permit them for following the actual status.
Additionally those systems are too expensive for small Turkish firms. Next, geographical
disparities greatly affect the logistics of milk and milk products. In European and American
countries distribution channels have been already well planned and established, reducing
logistics and warehousing costs. However, in Turkey, the existence of farmers in rural areas is
one of the reasons that complicate the transportation of dairy products. Another special and
very significant differentiation of Turkey is the absence of refrigerated farms while uncooled
farms exist everywhere. The milk thus must be collected periodically to prevent spoilage. Unless
there are refrigerator systems in the farms, the amount of transportation should increase and
this will lead to an increase in cost. Farms, in more developed countries, are definitely
constructed with refrigerators. By this way, that raw milk will be able to be more durable
without bacteria or any other kind of spoilage. There is also the reality of the small dairy barn’s
existence in Turkey. Even in countries smaller than Turkey, the small dairy barns either come
together and form bigger companies or may not have a right to exist in the market and shut
down. Lastly, 3PL usage is another issue which differentiates Turkey from other countries. In
Turkey, outsourcing is an almost brand-new tendency although other countries have already
been using it for a few years.
THE IMPACT OF INCREASING PRODUCT VARIETY
Milk could be taken may be a component of many different healthy delicious food [22]. As an
illustration, some people love to drink milk and fruit-juice at breakfast. For that reason, a milk-
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13. juice drink could be a pleasant originality for those people. Except that one, pro-biotics and pre-
biotics are collaborators for constructing a protection cover against a range of infections in the
human body [23]; furthermore, pro-biotics have a literal association with milk and products
made from milk as dairy foods have the ability to inhibit pro-biotic bacteria. This means putting
some protein and pro-biotics together by producing a kind of dairy product is a good idea since
they have countless advantages for human health. With that action, a new product that is
neither an exact dairy food nor a medicine will be created and there is a high demand for those
kinds of products. The most acknowledged assistance is the facilitation to digestion system,
support to urinary and genital organs, increased defense against infections, help for
manufacturing vitamins such as biotin, B6 or folic acid and reducing the threat for some cancers
[24].
Various kinds of pro-biotic products exist in the world market. Among those different kinds,
some have been introduced in different countries, some have different ingredients, but they are
all mostly pro-biotics. Soy based dairy products are an example of using soy constituents and
have many functions for human health. Fermentation is a rarely used method for creating new
dairy products from milk such as kefir, buttermilk, cheese and yoghurt. Fermentation is
accomplished with mesophillic and thermophillic bacteria, also lactose fermenting yeast [25].
Although there are many different kinds, pro-biotic yoghurt is the mostly chosen dairy in a list
which contains soy milk, juice-milks, and fermented dairies [26]. Kefir is another kind of dairy
product mostly produced in Turkey nowadays; the word kefir means ‘good feeling’ in Turkish.
It is a kind of dairy product which is made from kefir granules of bacteria and yeasts [27].
Similar to kefir in Turkey, there are new dairy drinks that contain vitamins and began in the
Spanish Dairy market. Sweden launched a new dairy product that has the ability to stable the
stomach and intestine activities. The United Kingdom created light version of the classical pro-
biotic yoghurt [28].
The other various products such as soy based or pro-biotic ones do not differ that much from the
rest of the simple dairies. The soy based or pro-biotic products also are unpreserved; it can be
claimed that some are even more unpreserved than the actual dairy food. This idea leads that
the same amount of significance should be given to cool in the trucks that are used in
transportation of soy based or pro-biotic dairy products. Some of the newly introduced dairy
products have a more elongated shelf lives which actually simplifies transportation and storage
conditions, but some of the pro-biotic dairy foods are much more vulnerable to temperature
value changes as pro-biotic bacteria exists in dairy food. Thus, cooling system should be
13
14. outstanding enough to maintain appropriate environment. Then again, pro-biotic bacteria are
anaerobic. They cannot continue living in an environment with oxygen [24]. To make them
continue living, oxygen level should stand in the least level to prevent the food from spoiling.
Therefore, a distinctive characteristic of transportation trucks is the ability to keep oxygen at a
specific level. Furthermore, pro-biotic dairy products have a peculiarity as hypersensitivity
against a level of pH. Pro-biotic bacteria require an acidic atmosphere to endure. The pH level
must be enough high and the effect of temperature on pH levels again should be considered.
The new kinds of dairies also have sensitivity to the environment with humidity similar to the
actual dairy foods such as milk and cheese. The most important dissimilarity of these products is
their place in the market. As long as the demand of the pro-biotic food is not too high, the cost of
logistics is apparently higher. In spite of some newly introduced products that have longer shelf
lives, some have much shorter shelf lives. Those with shorter shelf lives require better managed
transporting, which in turn needs reliable forecasts of sales volume to plan the transportation
process. Apparently, trendy and new products do not usually wait on the market shelves for an
extensive time of period.
CONCLUSIONS
In summary, this paper’s significance lies in the many valuable approaches and detailed
research about the logistics of dairy products. The information is over ally gathered from the
project reports of senior manufacturing systems engineering students. More comment and
much more detailed analysis are included and the last version of the paper is formed. According
to the latest version, the main points may be summarized as below.
Sometimes there are situations where negative responses against the product or out of stock
problems exist. The existence of those kinds of things will obviously cause enormous quantities
of excess product and high costs. Consequently, producers and retailers are affected by the
reaction of the customers about the product which usually occurs because of transportation. At
what time a new product is presented, unless it is a completely different creation, the plan of
transportation will remain the same. In contrast, if the demand is great, a new logistics strategy
might be useful. The new strategy may be putting a new truck in the transportation system.
Therefore, new products might be controlled in the volume and profit for precise assessments
about new transporting approaches.
14
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