Business process overhaul in dairy supply chains: An integrated approach of advanced forecasting and vehicle routing techniques

Sándor Remsei, Golam Sakaline, Md. Mahraj Uddin, László Buics

Article ID: 9403
Vol 8, Issue 16, 2024

VIEWS - 1021 (Abstract)

Abstract


The study explores improving opportunities of forecasting accuracy from the traditional method through advanced forecasting techniques. This enables companies to optimize inventory management, production planning, and reducing the travelling time thorough vehicle route optimization. The article introduced a holistic framework by deploying advanced demand forecasting techniques i.e., AutoRegressive Integrated Moving Average (ARIMA) and Recurrent Neural Network-Long Short-Term Memory (RNN-LSTM) models, and the Vehicle Routing Problem with Time Windows (VRPTW) approach. The actual milk demand data came from the company and two forecasting models, ARIMA and RNN-LSTM, have been deployed using Python Jupyter notebook and compared them in terms of various precision measures. VRPTW established not only the optimal routes for a fleet of six vehicles but also tactical scheduling which contributes to a streamlined and agile raw milk collection process, ensuring a harmonious and resource-efficient operation. The proposed approach succeeded on dropping about 16% of total travel time and capable of making predictions with approximately 2% increased accuracy than before.


Keywords


dairy supply chain; demand forecasting; scheduling; supply chain management; vehicle routing

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References


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DOI: https://doi.org/10.24294/jipd9403

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