Mixed integer programming for strategic decision support in the slaughter by-product chain

A mixed integer linear programming model to support strategic decision making is presented, in order to find the optimal processing structure for a slaughter byproduct business. In an integrated approach environmental objectives (such as odour emission, water pollution and energy consumption), market outlets, quality requirements (both for product and process), costs of processing, transportation, environmental measures and governmental restrictions are modelled to find the optimal investment strategy for future ways of processing slaughter by-products. Emphasis has not been put on development of new models or techniques. The value of this contribution is how to find new cost-effective logistical solutions within a framework of environmental restrictions, quality and technological opportunities.