1. Jirawan Niemsakul Sripatum University Chonburi Campus Chonburi, Thailand, 20000 klinsi_07@hotmail.com Problems Analysis and Truck Allocation in Sugarcane Transportation to Sugar Mill Case Study: Sugar Mills in the Eastern Thailand INFORMS 2009: San Diego, USA October 13, 2009

2. Content Introduction Description of problems Transportation strategies A mathematical model A case study of a sugar mill

3. Introduction Eastern Thailand produced sugarcane about 4,641,118.54 tons in 2007/08 The major income of Thailand is from agriculture Thailand exported sugar more 1,000 millions dollars and produced sugarcane 67,197,817 tons

4. Raw material (cane) Quota area Owned by farmer Transportation (Truck) Queuing system Inbounds logistics Extended area Owned by mill Rented truck FIFO Locked queue FIFO +Locked dump (fresh cane) FIFO +Locked dump (extended area)

5. Description of Problems

6. 1 2 3 Amount (Ton) Time (Month) Dec. Jan. Feb. Mar. Apr. May 18,000 Mill Capacity Supply over demand Supply less than demand

7. Transportation strategies Database management Transport center Planting Clustering Truck allocation Truck energy system Routing Technology

8. Mathematical Model Decision Variables X ijk = Sugarcane supply delivered by owned truck i of area j, period k Y mjk = Sugarcane supply delivered by rental truck m of area j, period k TX ijk = Number of transportation times of owned truck i of area j, period k TY mjk = Number of transportation times of rental truck i of area j, period k

9. Mathematical Model Objective Function Minimize total transportation cost Fuel cost Driver cost Transport service cost Maintenance cost Losing cost

10. Mathematical Model Fuel cost Driver cost Transport service cost Maintenance cost Losing cost

11. Mathematical Model Constraints Mill capacity Sugarcane supply Quota contract of truck The used priority weight of truck using Limited transportation times of truck per period Balancing between transportation times and sugarcane supply per period

12. A Case Study of Sugar Mill Sugarcane truck allocation for 2 areas in 60 periods (baht)Current System Proposed Fuel cost5,047,2466,438,322 Driver cost3,564,0007,128,000 Transport service cost2,904,0001,770,000 Maintenance cost6,334,4166,334,416 Loosing cost25,024,68018,784,420 Total42,874,34240,455,160 Total transportation cost can be decreased 5.64%

13. A Case Study of Sugar Mill Area Current System Proposed Owned truck Rental truck 1 148 16 (all) 148 16 (some periods) 2 50 6 50 0 Number of trucks in queuing system can be decreased 2.73%