학술논문
Modelling New Zealand milk: From the farm to the factory
Document Type
redif-paper
Author
Source
Victoria University of Wellington, School of Economics and Finance, Working Paper Series.
Subject
Language
English
Abstract
Dairy products have long been an important dietary component, particularly for young children. Because of this the dairy industry is especially sensitive to contamination scares, and dairy is of particular importance to the New Zealand economy. This paper develops a Markov chain model for the early stages of the dairy supply-chain. Using the case of a major New Zealand Dairy company, simulations are run under various product-testing scenarios. Results point to the importance of where and when testing and interventions take place. Being strict about removing potentially contaminated product early on in the supply chain can reduce total losses and improve overall production output.