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Coupling sugarcane supply management and payment systems models to improve mill value chain

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(1)

96000 98000 100000 102000 104000 106000

Scénaroi 1 Scénaroi 2 Scénaroi 3 Scénaroi 4

T

onnage

de suc

re

1. Identification of homogeneous quality zones

3. Simulation and comparison of benefits for different scenarios Complete benefits up to 5 % of additional sugar 0 3000 6000 9000 12000 15000 12,0 12,5 13,0 13,5 14,0 14,5 15,0 15,5 16,0 29 34 39 44 49 28 32 38 40 44 48 52 D e liv e ry al lo cation s (t ) Su gar c o n te n t (% )

Season weeks Season weeks

PU1 PU2 PU3 Scénario 2 0 1 2

PU1 PU2 PU3

E c a rt de rev e nu (% ) Scénario 2 -6 -3 0 3 6 9

PU1 PU2 PU3

E c a rt de rev e nu (% )

2. Building new scenarios

Pabs

Paiement A 4. Distribution of benefits between different zones

Insert Your Poster Title

That May Wrap to the

Next Line Here

Coupling sugarcane supply management and

payment systems models to improve mill value chain

S. AUZOUX, C. LEJARS

Contacts: [email protected], [email protected]

COMPA software architecture

COMPA database is the result of MAGI and PEMPA databases merging (figure 2).

The simulations are initiated by the COMPA user interface which controls MAGI and

PEMPA user interfaces.

Supply or payment scenarios are configured along a chronological path: 1. Define the mill area structure

2. Characterize mill season period and planning weekly allocation deliveries 3. Define quality indicators used for payment system.

COMPA simulates first the mill supply throughout the season, and then calculates the weekly revenue shared between growers and millers.

Higgins, AJ., Thorburn, P., Archer, A. and Jakku, E. (2007). Opportunities for value chain research in sugar industries. Agricultural Systems, 94 (3): 611-621.

Lejars, C., Le Gal, P.Y. and Auzoux, S. (2007). A decision support approach for cane supply management within a sugar mill area., Computers and electronics in agriculture,,60 (2): 239-249.

Lejars, C., Auzoux, S., Siegmund, B. and Letourmy, P. (2010). Implementing sugarcane quality-based payment systems using a decision support system. Computers and Electronics in Agriculture, 70 (1): 225–233.

Study case in Reunion Island

Le Gol mill area was divided into six sub-areas with different quality curves. Various cane supply scenarios based on these sub-areas were evaluated using COMPA (figure 3).

The simulated results showed:

1. Total sugar production could be increased by 2–5% by dividing the mill supply area into homogenous zones and adapting allocation according to cane quality variations.

2. The current payment system led to unequal sharing, though a relative payment system could provide win-win solutions.

COMPA modelling structure

It 's the result of coupling two existing developed models: MAGI© [2], a simulation tool to address cane supply chain management issues, and PEMPA© [3], a decision support system to investigate the impact of different payment systems (figure 1).

COMPA simulates the cane crushing season on a weekly time basis, in a mill supply area. It calculates sugar production and the revenue sharing between growers and millers, according to quality deliveries and payment rules.

A wide range of supply and payment scenarios can be tested and compared.

Figure 3: Example of conception and assessment of new systems in Reunion

© C irad /UR U R SCA Irs tea /UMR G -E A U , S. Auz ou x & C .. Lej ars 2013 PEMPA DB

• Elementary unit parameters • System payment formulae • Intermediate calculated data

Shared space • Mill supply area structure

• Production unit and mill parameters • Input data:

• Weekly tonnage delivered • Weekly quality indicator

MAGI DB

• Intermediate operators parameters • Rules of planning

• Intermediate calculated data

COMPA DB

Stakeholders’ revenue

Distribution of deliveries during the season period

Simulation

Weekly sugar produced Dates and season period Weekly allocation delivery

PEMPA user interface

Planning

MAGI user interface

Planning Simulation

Weekly synthetic indicator

Quality paid COMPA user interface

Control

Flows of information

Sequence of execution of programs

Improving sugarcane supply planning and creating incentives to performance are two key actions that increase value generated by the

sugar industry [1]. A simulation tool COMPA (COupling supply Management and PAyment system models) was implemented to explore

new supply planning and quality-based payment solutions while facilitating negotiation between millers and growers.

Main issues addressed by COMPA are:

How to share the potential sugar value between growers and millers?

Selection of relevant cane payment system

Assessment of cane quality along supply chain

How to organize mill supply?

Choice of mill opening and closure dates

Rules of allocation deliveries among growers.

COMPA increases transparency of payment system impacts on revenue sharing between stakeholders and facilitates the negotiation

process between millers and growers. It can be used to support the design of new supply planning and alternative payment systems for

multiple-purpose sugarcane. It's free software intended for researchers and industry professionals.

Figure 2: COMPA data structure and processing

© C aroli ne LEJ AR S Sampling of deliveries © Sa nd ri ne A UZ OUX Cane harvesting

Figure 1: COMPA modelling structure

Scenario n …

Comparison of payment formulae impacts Comparison of allocation rule impacts Analysis of value sharing between stakeholders

Stakeholders 'revenue Scenario 1 Payment simulation Sugar production Payment formula

Grower’s revenue formula Mill supply area:

Elementary unit, production unit, intermediate operator, mill

Supply simulation

Weekly tonnages delivered

Weekly Synthetic indicator Weekly allocations

deliveries Season period

Weekly quality indicators Capacity constraint

(cutting, storage, crushing)

Formula for Synthetic indicator Formula for Quality paid

Sugar and by-products price

MAGI PEMPA

J'ai vu qu'il y avait une faute qui restait dans le poster. C'est

dans le paragraphe "Compa

Software architecture", ce n'est pas "Characterise" mais

"Characterize". Et enfin dans la conclusion, ce n'est pas "It's a free software" mais "it's free software".

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