Design network model applied to the soybean chain in Brazil: from transportation, warehouse up to exportation

Abstract

The soybean exporter chain represents a high proportion of the Brazilian economy. However, the main producing areas are far from seaports and exposed to several logistic problems, which are a consequence of the lack of planning and investment in infrastructure. As a result, producers are burdened by the additional logistical costs, which affects the competitiveness of the Brazilian soybean industry and reduce the amount of capital for future investments. Faced with this reality, this paper proposes a mathematical model that combines hub network design and warehouse location to minimize the transportation and storage costs related to the soybean exportation chain