A Multi-objective Mixed-Integer Linear Model for Sustainable Dairy Supply Chain with Food Waste and Environmental Pollutants

This study contributes to dairy supply chain due to the lack of food waste and environmental pollutants. The objective of this study is to minimize the total system cost and reduce carbon emissions and food waste for a dairy supply chain with multi-echelons. The system consists of multiple farmers, single processing plant, multi-distributor, and multi-retail customer. This study presents a multi-objective mixed-integer linear programming (MOMILP). A MOMILP proposed model was validated to provide insights into dairy industries. A real case study of dairy milk problems in West Java (Indonesia) was solved by using optimization software. The optimal results show that applying the proposed model can minimize total costs, reduce food waste, and minimize environmental pollutants. Finally, the results of sensitivity analysis show that the total supply chain costs and food waste costs are significantly influenced by variance of temperature in fresh milk storage.