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Procurement, Production and Marketing at Supply Drive Milk and Milk Products

Cooperative

Institution Affiliation

Students Name

Course

Date
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ABSTRACT

An MMPC-concept, an association with its owners in India as dairy growers and solving

a mathematical programming model, is developed to provide driven milk and dairy products.

The Statistical Software of the Milk and Milk Products Cooperative Inc. This supply-driven

cooperative's widespread purchase, production and marketing challenge is defined by extremely

inefficient commodities (Murty, 2015). Both high and low return products are part of the MMPC

portfolio and cannot be inventoried for a long time without cooling off. The MMPC also takes a

sales and stock approach, which considers both the desires of manufacturers and customers. In

this regard, well before the peaks of the supply year, the cooperative wants to formulate its

annual policies.

HISTORY PROBLEM

Milk is a highly essential human dietary product. It is a rare and precious material made

from cattle. Nevertheless, people are usually less conscious than we are today of the progressive

journey of milk through various centuries. The paper aims to trace the past of the world's cows,

milk and milk goods. The roots of domestic cows and cows' migration around the continents

would be explained. For example, in the milk sector, homogenization, pasteurization,

fortification, milk bottles, and milk processing would also be an aspect of the technical

development of these products[ CITATION Mur15 \l 1033 ]. Finally, the invention of multiple

milk items such as yoghurt and cheese would be explained.

For several years, the source of domestic cows has remained a mystery. Accordingly,

several theoretical structure structures were suggested, each offering alternate chronological and

spatial models that indicate the starting point for domestic cows to spread. The first move

towards domestication is believed to have been taken in Southwest Asia. The domesticated cattle
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entered Europe as they moved from South-West Asia to Europe. It must have had a modest

history since something seems current to have grown.

METHODOLOGY IN MODELLING

Raw milk buying rates and the selling prices of the goods per planning year season are

the principal decision variables. The annual sales profits are determined by sales rates and

amounts, whereas the prices of raw materials and consequent supply levels are based on

purchase values. The figures provided and the revenue volumes must be linked to all sales and

sales prices to show the analytical role of the cooperative's annual net profit as a consequence of

these main judgment factors[ CITATION Pal15 \l 1033 ]. The adoption of accessible evidence to

collect appropriate and reliable knowledge to gain more insight into the condition under review

is essential for quantitative research. The first important task in developing a mathematical

model for the problem of the MMPC, in this respect, consists, for every season of each year, in

the generation of terms for acquisitions and volumes of sales. In the following subsections, we

explain approaches for findings.

DISCUSSION

MMPC - Milk and Milk Products Cooperative - is a cooperative corporation with its

Member farmers in India as shareholders in milk production. The company is supply-oriented

such that the cooperative needs to purchase all of the raw milk supplied by its member supplier

according to its by-laws and therefore does not buy milk from farmers that are not members. It

sells a portion of the milk that is generated as liquid milk to many consumers regularly, and the

rest of the milk is used to make items such as milk powder, ghee, butter, ice cream, etc. for sale

in India as well as in a few foreign nations (Palsule-Desai, 2015). The cooperative's commodities

can be classified into two categories on the grounds of profits: large rates of goods (ghee, butter,
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ice cream), low rates (liquid milk, milk powder) and low return items (liquid milk, milk powder).

All high return goods, which can be kept for long periods undercooling, are not perishable. Low-

return products can eat liquid milk, and milk powder may not be penetrated. Milk powder may

also be reconstituted in liquid milk and still used as a transparent raw material for the

cooperative.

To retain their membership in a cooperative, farmers shall sell specified minimum raw

milk to MMPC. They are, however, allowed to offer their crude milk to any buyer like MMPC

above the minimum quantity. The farmers will do their utmost to optimize their raw milk

products

RESULTS

The outcome of the mathematical programming model showed that most of the variables

in over one milk distribution channel choice were important. In contrast, one variable in only one

consumer outlet was significant of the seventeen explanatory variables included within the

model, eight variables such as marker distance, milk production, Contractual arrangement,

quality control, cooperative participation, average milk price, sales of dairy cow and

substantially affected the amount of cooperative channel[ CITATION Pal15 \l 1033 ].

For raw milk and liquid milk the unit adopted is litres (L) and for other products it is

kilogram (kg). Capacity, cost, and raw material requirements for output products of MMPC.

Pr Output Productio Prod Invento R

i
r
e
d
(million (Rs./ (Rs./uni (
unitsb) unit) t) L
/
u
n
it
)
1 Liquid 600 2.30 N/A 1
milk
2 Milk 100 11.72 1.41 6
powder .
4
0
3 Ghee 25 32.20 3.86 1
4
.
8
0
4 Butter 27.50 26.45 3.17 1
0
.
5
0
5 Ice- 27.50 17.60 2.11 3
cream .
7
5

The sales of liquid milk of MMPC are typically identical in both winter and summer

seasons in a year, and they can be considered to be equal in analysis

Sales Sales
volume price
(million L) (Rs./L)
2001 23
2002 23
2003 24
24
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CONCLUSION AND RECOMMENDATIONS

The outcome of the multivariate math programming model reveals a divided estimate of

the judgment on the option of a milk channel and simultaneous decision-making of the four Milk

Channels. The most common milk marketing chains, including consumers, cooperatives,

customers and cafés/restaurants, assemblers/traders and cafes/restaurants, monitors/traders,

consumers, and customers, have been positively correlated. A detrimental relationship between

coffee and cooperative networks, assemblers, merchants and cooperative channels is also

observed as major determinants of milk consumer preference, cooperative participation and

physical remoteness from the milk market were established.

Politicians should also propose setting up new milk cooperatives/milk collection centres

in the future milk development and marketing regions, enabling dairy farmers to gain mutual

access to the milk sector and new technology. There is also the need to train and facilitate milk

monitoring, storage, and collection equipment to ensure milk protection along milk market

canals for established dairy cooperatives within the milk quality control framework. Milk

farmers, on the other hand, can concentrate on increasing crossbreed's milk production capacity

by increasing their genetic potential through the use of artificial insemination technology and

self-processing milk so that niche market products are generated, and milk can be sold directly to

consumers from their farms to better profit through adding value to their milk.
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References

Palsule-Desai, O. D., & Murty, K. G. (2015). Procurement, production and marketing at supply-

driven milk and milk products cooperative. In Case studies in operations research (pp.

61-81). Springer, New York, NY.