MODELING POST HARVEST LOGISTICS OPERATION OF PEPPER: A CASE OF HALABA ZONE

Abstract

Logistics Optimization models have been used extensively for reducing logistics costs and maximizing benefits. Those models are for enhancing the logistics chain. Post-harvest logistics operations are for agricultural logistics activity after harvest. This thesis concerns on agricultural sector post-harvest logistics operation of red pepper. The thesis was conducted on one of the Ethiopian pepper-producing area called Halaba Zone. Taking Halaba red pepper as a case study, the research attempted to analyze the existing logistics practices and distribution process of Halaba red pepper, to optimize the pepper logistics activities. Data were collected using a questionnaire, case study, observation, semi structured interview, and document analysis. The research uses SPSS software for statistical data analysis, Minitab19 software for regression analysis, Excel spreadsheet for Pareto analysis and Excel QM for LP transportation optimization model. The analysis of existing supply chain management practices indicates the availability of poor practices during logistics activities. The poor practices in logistics activities had a direct effect on pepper price inflation. In order to show correlation between price of pepper and logistics activities regression analysis conducted. The regression analysis result shows a positive correlation between logistics activities cost and price of pepper. After regression analysis Pareto analysis conducted taking four logistics activities costs as parameters. The need to conduct Pareto analysis is to give priority for greater contributor of logistics cost. Based on Pareto analysis transportation cost found as the greater contributor cost among logistics activities. Therefore transportation model built .The built transportation model can save 18.5343% of 2019/20 transportation cost of Halaban pepper. This percentile means the built model worth of saving were around 1,611,555 ETB. Based on this finding it‟s possible to conclude that measures taken in logistics activities can give positive result in minimizing price of pepper