Modelling Energy and Dairy Supply Chains

Open Access
Thiyagarajan, Rushmitha
Graduate Program:
Industrial Engineering
Master of Science
Document Type:
Master Thesis
Date of Defense:
Committee Members:
  • Vittaldas V Prabhu, Thesis Advisor
  • Electricity and water trends
  • Energy Supply Chain
  • Dairy Supply chain
  • Distribution Network design
  • Greenhouse gas emissions
Globally interconnections between food, energy, water security and environmental sustainability exist. It has been recognized that efforts to address only one part of a systemic problem by neglecting other inherently inter-linked aspects may not lead to desirable and sustainable outcomes. The objective of this paper is to analyze the cross impact of one on the other. The influence of electricity prices and water prices on the electricity and water consumption are observed and it is seen that there is a noticeable decrease in the demand level as price increases. A supply chain network perspective has been developed and the behavior of various decision-makers such as fuel suppliers, power generators, distributors, transmitters and the consumers were considered. In this paper, we consider dairy industry as an instance of demand market. A spreadsheet tool using goal programming technique, calculates the electricity consumption and fuel consumption using dairy demand data as the input. It also calculates the corresponding water consumption in the PJM (Pennsylvania, New Jersey and Maryland) area. The variations in demand in the dairy industry are reflected in the water consumption. Furthermore, a distribution network is designed where distribution centers for fluid milk products are strategically positioned and the corresponding shipping costs and greenhouse gas emissions are calculated. Variations in the shipping cost and greenhouse gas emissions based on the number of distribution centers are studied. It is seen that increasing the number of distribution centers, increases the total cost, but decreases the shipping cost and the greenhouse gas emissions. On the other hand decreasing the greenhouse gas emissions, increases the total cost to almost the same extent and reduces the shipping cost.