Scheduling for maximum profits in the Icelandic cod industry
Systematic methods and tools for managing the complexity
Process Simulation and Optimization (T4-9P)
Keywords: optimization, scheduling, fishing, quota
The importance of fisheries for Icelanders has always been great. Despite growth in other industry sections, such as tourism and banking, the fishing industry is still very important. It has bee estimated that fishery together with multiplication influence counts for 30% of domestic production (Ragnar Árnason, 2004).
During the last years the food market has been changing in countries that buy fish from Iceland. The importance of frozen fish products has decreased together with an increase in the export of a fresh fish. One reason for this development is the increase in demand for ready made fresh fish courses, increasing the price gap between fresh and frozen products in general.This fact, as well stagnating or decreasing quotas, because of the limited size of the Icelandic cod stock has moved focus to the importanceof utilizing the cod stock in a sustainable way and maximize the value of the catch.
Icelandic fishery companies have long ago realized this and much effort has been put into increasing the value of the catch in the last years. Research has shown that the proper processing and finishing of the fish gives an increase in value (Rúnar Birgisson and more, 1996). A link between the flesh of the cod and how the fillets can be used has been established. The use of the fillets is very important when it comes to profitability of the cod. Factors as nematodes, bloodspots, bruise and gaping of the fillets are costly. Difference in the properties of cod depending on which season is and on what fishing areas it is caught on has also been shown (Sveinn Margeirsson, 2003).
In continuance of the above findings, a Decision Support System (DSS) has been developed, aimed at improving profitability in the Icelandic cod industry through improved short and long term planning, better overview of the value chain and stronger market position. In this model, Icelandic waters are divided in 13 areas, each with different characteristics in term of properties of the caught cod. The year is divided into four seasons and the aim is to find where and when the quota should be caught in order to maximize profits of the fisheries companies.
The aim of this project is to make a model that can be used for optimization within the seasonal periods here above. In other words how companies should organize their fishing for a shorter time period within certain fishing areas. The model is to include landing of the fish and when the ships should leave the harbor for fishing. The model will also include the factors such as value loss caused by ageing of the raw material, if ships stay at see for to long, as well as taking the needs of the processing into account.
The project is a work in process and it is scheduled to be finished this summer. It is as said here above a part of an extensive work that has been going on, including PhD projects as well as MSc projects.
This project would be a good contribution to The LMC Congress 2007: Innovations in Food Technology due to its obvious relevance to the subject of the congress and the fact that it is a part of an innovative use of optimization models.
Presented Wednesday 19, 13:30 to 15:00, in session Process Simulation and Optimization (T4-9P).
