Answer To: Assessment 2 (Individual Assignment) Step 1: Supply Chain Design Select one of the following supply...
Akansha answered on May 10 2021
Literature Review on Application of Quantitative Methods in Design and Analysis of Dairy Supply Chain
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Dairy Supply Chain Design
Dairy Industry in Australia is a major industry in rural areas, from where the complete supply of dairy is done within the country. Supply chain management of Dairy industry has a very important position in the success of dairy industry as the products in this industry which is dairy products are highly perishable and it needs to be taken care during the supply chain that the products do not gets damaged while supplying it to the various retailers, wholesalers, or customers. Thus the chilling units or the cold storage is considered very crucial in the entire dairy SCM.
To explain the dairy distribution channel the first and foremost role is played by farmers who are producing the milk from the animals, then some of the milk is send to the nearby local businesses which consume milk and have a business relation with the farmers directly, and major percentage of milk is sent to the chilling units, so that the milk doesn’t gets spoiled. From the refrigerating units the raw milk is send to the milk processing units wherein the milk gets pasteurized and other dairy products are formed like yogurt, cheese, etc. and packed in different packaging, some unused milk is sent to cold storage and some of the milk is sent for the purpose of network building to various suppliers and business collaborators. Then the packed dairy products are supplied to the warehouses to store them before sending forward. Then the dairy products are sent to the retailers and also to the direct customer delivery services and then both of these units deliver the end products to the users. The SCM of dairy products works on very high speed as the dairy products are having low shelf life, and can be perished or damaged after a certain period of time. Also in the entire supply chain the products are kept in the chilling units as the temperature has an influence on the shelf lives of the products (Lower & Pollock, 2017).
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Consumers
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Home Delivery Contractors
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Retailers
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Wholesalers
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Stockrooms
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Chilling
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Milk Processing
Units
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Cooperative Societies (Chilling Units)
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Local milk businesses
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FARMER
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System Services
Animal Medical Units
Animal Husbandry
Feed production units
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cking Material Producers
Farming Units
Transportation
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Figure: Dairy Supply Chain Management in Australia
Important Variables of Dairy Industry
Overview of Products
Dairy industry of Australian is a mass producer of various products in dairy such as Milk, Butter, Cheese, Milk powder, Whey products and Casein. In Australia milk intake is increasing day by day, though the demands of the milk are changing as now people are interested in purchasing low-fat milk, or skimmed milk. Australian market of fresh milk is captured by two leaders which are National Foods and Parmalat. But there are certain small developers of milk products also. Australia is an overseas supplier of butter in various countries like Egypt, South Korea, Singapore and Morocco (Yurova, Meldenberg & Parfenova, 2019). Cheese is considered as the major dairy product that is consumed in the country, there is higher demand of Cheddar Cheese rather than other types of cheese. Japan is considered as the major export market of Australia for Cheese which covers around 50% of the market. The other countries who are supplied the cheese from Australia consist of Taiwan, China, Saudi Arabia and South Korea. In Australia different types of Milk Powders which are manufactured, these include milk powder with fat and fat free milk powder. The remaining item after milk which is handled is called Whey. Generally whey was discarded; anyway acknowledgment of the estimation of whey's parts has seen the interest increment essentially. The powders of whey and its proteins are healthy and valuable in sustenance generation.
Risks involved in Dairy Supply Chain
The major concerns in the SCM of the Dairy products in Australia could be:
Climate Change- This is the most important factor that can be considered as the risk in the SC process of milk related products as mentioned earlier the milk related products are highly perishable and if the climate is extremely hot it can result in the damage of the products.
Lack of chilling capacities- As the low shelf life of dairy products is considered as a challenge there are the chilling units which help in keeping the dairy products safe and secure during the supply chain process, but if the chilling units are not of sufficient capacities they can be huge risk for the business.
Gap in transportation and supply- Long distances must be covered to reach the collection center's bulk milk coolers. If there is a transportation issue it could also lead in a risk factor for the supply of dairy products (MISHRA & B, 2011).
Major Stakeholders of Dairy Industry
There are various stakeholders of the dairy industry in Australia who have an influence in the industry either in direct or indirect manner. These stakeholders could influence the three stages of dairy industry which are: pre-production, production of fresh milk, & processing and distribution. During the stage of pre-production of dairy products the farmer requires the feed for the animals which incurs around 30% of the cash cost for the farmers. The international nature of the market thus has an impact on the international cost of the animal food resulting in the increased cost of milk received from the farmers. Fertilizer is a notable contribution to helping field development for most dairy ranches. For expanding creation, the significance of fields makes agronomy essential (Lower & Pollock, 2017).
The cost of Australian milk relies upon the milk fat and protein solids in the conveyed milk. Farmgate expenses can change between producers, states, and individual farmers, as organizations work a scope of driving force/discipline portions related to drain quality, gainfulness, and off-season supplies.
Different...