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Optimization of the Production Planning and Trade of Lily Flowers at Jan de Wit Company

Author

Listed:
  • José Vicente Caixeta-Filho

    (Universidade de São Paulo, Escola Superior de Agricultura “Luiz de Queiroz,” Avenida Pádua Dias, 11, 13418–900 Piracicaba, SP, Brazil)

  • Jan Maarten van Swaay-Neto

    (Interativa S/C Ltda., Rua Campo do Pouso, 1189, 13825–000, Holambra, SP, Brazil)

  • Antonio de Pádua Wagemaker

    (Wagemaker Consultoria Ltda., Rua Santo Antonio, 821, 13830–000, Santo Antonio de Posse, SP, Brazil)

Abstract

Jan de Wit Company implemented a decision-support system based on linear programming as a production-planning and trade tool for the management of its lily flower business. The LP maximizes the farm's total contribution margin, subject to such constraints as market-defined sales limits, market requirements, characteristics of the production cycle duration, technical requirements, bulb inventory, and greenhouse limitations. The main decision variable to be calculated is the number of flower beds in a specific greenhouse, from a specific bulb batch, of a specific variety, for a specific purpose, taking into consideration planting and expected harvesting weeks. Between 1999 and 2000, company revenue grew 26 percent, sales increased 14.8 percent for pots of lilies and 29.3 percent for bunches of lilies, costs fell from 87.9 to 84.7 percent of sales, income from operations increased 60 percent, return on owner's equity went from 15.1 to 22.5 percent, and best quality cut lilies jumped from 11 to 61 percent of the quantities sold. The system also suggested changes in the product mix.

Suggested Citation

  • José Vicente Caixeta-Filho & Jan Maarten van Swaay-Neto & Antonio de Pádua Wagemaker, 2002. "Optimization of the Production Planning and Trade of Lily Flowers at Jan de Wit Company," Interfaces, INFORMS, vol. 32(1), pages 35-46, February.
    • Handle: RePEc:inm:orinte:v:32:y:2002:i:1:p:35-46
    DOI: 10.1287/inte.32.1.35.13
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    Cited by:

    1. Shunyu Yao & Neng Fan & Clark Seavert & Trent Teegerstrom, 2023. "Demand-Driven Harvest Planning and Machinery Scheduling for Guayule," SN Operations Research Forum, Springer, vol. 4(1), pages 1-25, March.
    2. Hu, Ming-Che & Chen, Yu-Hui & Huang, Li-Chun, 2014. "A sustainable vegetable supply chain using plant factories in Taiwanese markets: A Nash–Cournot model," International Journal of Production Economics, Elsevier, vol. 152(C), pages 49-56.
    3. Li-Chun Huang & Yu-Hui Chen & Ya-Hui Chen & Chi-Fang Wang & Ming-Che Hu, 2018. "Food-Energy Interactive Tradeoff Analysis of Sustainable Urban Plant Factory Production Systems," Sustainability, MDPI, vol. 10(2), pages 1-12, February.
    4. Kusumastuti, Ratih Dyah & Donk, Dirk Pieter van & Teunter, Ruud, 2016. "Crop-related harvesting and processing planning: a review," International Journal of Production Economics, Elsevier, vol. 174(C), pages 76-92.
    5. Behzadi, Golnar & O’Sullivan, Michael Justin & Olsen, Tava Lennon & Zhang, Abraham, 2018. "Agribusiness supply chain risk management: A review of quantitative decision models," Omega, Elsevier, vol. 79(C), pages 21-42.
    6. Ahumada, Omar & Villalobos, J. Rene, 2009. "Application of planning models in the agri-food supply chain: A review," European Journal of Operational Research, Elsevier, vol. 196(1), pages 1-20, July.
    7. Ferrer, Juan-Carlos & Mac Cawley, Alejandro & Maturana, Sergio & Toloza, Sergio & Vera, Jorge, 2008. "An optimization approach for scheduling wine grape harvest operations," International Journal of Production Economics, Elsevier, vol. 112(2), pages 985-999, April.
    8. Osaki, Mauro & Batalha, Mário Otavio, 2014. "Optimization model of agricultural production system in grain farms under risk, in Sorriso, Brazil," Agricultural Systems, Elsevier, vol. 127(C), pages 178-188.
    9. Wishon, C. & Villalobos, J.R. & Mason, N. & Flores, H. & Lujan, G., 2015. "Use of MIP for planning temporary immigrant farm labor force," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 25-33.
    10. Omar Ahumada & J. Villalobos, 2011. "A tactical model for planning the production and distribution of fresh produce," Annals of Operations Research, Springer, vol. 190(1), pages 339-358, October.
    11. Soto-Silva, Wladimir E. & Nadal-Roig, Esteve & González-Araya, Marcela C. & Pla-Aragones, Lluis M., 2016. "Operational research models applied to the fresh fruit supply chain," European Journal of Operational Research, Elsevier, vol. 251(2), pages 345-355.
    12. Sheng-I Chen & Wei-Fu Chen, 2021. "The Optimal Harvest Decisions for Natural and Artificial Maturation Mangoes under Uncertain Demand, Yields and Prices," Sustainability, MDPI, vol. 13(17), pages 1-17, August.
    13. Wenbo Zhang & Wilbert Wilhelm, 2011. "OR/MS decision support models for the specialty crops industry: a literature review," Annals of Operations Research, Springer, vol. 190(1), pages 131-148, October.

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