The Dairy Supply Chain Model

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“ In the heart of Ain Al Sindianeh reside a farm and a plant that embody a great dream, the dream of Khoury family. From the father to the son, Khoury family managed to build a deep-rooted history in this field.” “This long and distinguished march towards success and prosperity started in Baskenta where they produce dairy products for the family and some friend’s consumption.” “Then, Mr. Melhem Khoury decided to expand the production and start promoting his family products in the Lebanese villages and towns. In 1943 he established an individual institution specialized in the dairy production and distribution. From Al Khinshara town where a small enterprise was founded in 1996 with ten workers, back to Ain Al Sindianeh in 2001, a new building…show more content…
This was possible due to the ability of the DSCM to mimic the dynamics of the Lebanese dairy industry by simulating demand-driven ordering systems and, at the same time, supply-driven milk supply to factories according to a weekly supply schedule. The modeling of such demand-supply system was made through the management of inventories in the supply chain. It is unsurprising that, as supermarkets acquired increasing presence in the minds of consumers and economic power in grocery markets, they began to develop their own brands as a means of bolstering market share and profits. This has given the retailer a new role – in addition to their traditional role as purchaser, they have become a direct competitor. Over time, however, these products have extended outwards to cover a much wider range of goods, and upwards into premium segments. Given that shelf space is finite, branded goods are being increasingly squeezed out by retailers’ own brands. It is profitable twice over for the supermarkets to do this. First, the promotion of their own brand products can be carried as part of their corporate promotional overhead, which implies substantial savings of indirect cost. Second, the closer control that supermarkets have over their own brand suppliers means that they can often achieve lower direct product costs too. Yet, as retailers’ own brands have moved up market into premium and prepared foods, the prices they can command are often not far below those of independent, established brand owners. Low prices to suppliers are a complaint in all countries where buyer power problems have been reported. Deep discounting by supermarkets induces low buying prices and can result in producers making little profit or even losses, while prices to consumers remain high. The prices that farmers receive for their milk vary by region and are

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