Determining Appropriate Production and Inbound Logistics Practices for a Cassava Supply Chain in Thailand

Abstract

This article examines the production and inbound logistics activities, from farms to factories, of cassava products in Thailand. The activities are critical to the total supply-chain cost owing to the large number of farmers and stakeholders involved. The objectives of this study were to estimate the production and inbound logistics costs under different practices and to recommend a set of cost-effective practices. Data were collected from a field study and analyzed. Profits and yields under different practices of cultivation, consisting of stem usage, pest control, and weed control, were evaluated. It was found that proper pest control had significant associations with a higher yield and profit, whereas using existing stems from the previous harvest cycle had a significant association with higher profit. Furthermore, three patterns of labor hiring in harvesting activity were investigated. The results indicated that labor hiring based on a daily wage rate versus a weight-based rate were not statistically different, while a flat rate for the combined activities of harvesting and transportation was found less economical. Finally, the transportation rates of hired trucks and owned trucks were estimated and compared. The results suggested that hiring transportation services was more cost effective than using owned trucks if the truck was primarily used for cassava transportation only. The break-even numbers of trips per year for each truck type were determined as a guideline for farmers to justify owning a truck.