Rice chain flow modelling for optimised supply and distribution network: the case of specialised rice mill zones in Bangladesh

The purpose of this paper is to explore the reorientation of the informal rice industry of Bangladesh into integrated and specialised rice industry zone(s), which should create platform and economy of scale for formal logistics development in an otherwise informal industry chain. This research aims at planning specialised rice industry zone(s) and associated transport logistics through finding optimised location of such zone(s) with minimised total transportation cost. Network flow model is developed using mixed integer linear programming formulation for evaluating zone locations with consolidated input and output supply base for improving informal supply and distribution logistics. Experiments with the model provide optimised locations of specified number of rice zone(s) with minimised transportation cost. The findings of this research will be useful for policy makers, transport and agribusiness researchers in rice-producing countries, especially, which have informal setup of rapidly growing rice mills. The concept can be multiplied for other crops and scaled to other rice producing countries.