KnE Life Sciences
ISSN: 2413-0877
The latest conference proceedings on life sciences, medicine and pharmacology.
Analysis of Logistics Costs for Rice Mills in Improving the Aroma of Jasmine Rice
Published date: Mar 01 2018
Journal Title: KnE Life Sciences
Issue title: The 3rd International Conference on Agro-Industry 2016 “Competitive & Sustainable Agro-Industry" (3rd ICoA 2016)
Pages: 146-153
Authors:
Abstract:
One of unique characteristics of Thai jasmine rice is its aroma, which can easily reduce in various conditions during post-harvesting activities, especially in rice milling stage. This study aims to investigate logistics cost analysis of the rice mill of Kasetwisai Agricultural Cooperative, Ltd. by using activity based costing (ABC) method and to define key activities for the improvement of the rice aroma loss reduction. The results show that the activity that has the highest logistics cost is warehousing at 26.52%, followed by material handling at 24.27%, transportation at 12.33% and packaging at 10.84% of the total logistics cost, respectively. The total logistics cost per unit of the rice mill is about 4.52 baht/kg. Findings from an in-depth interview revealed that warehousing and transportation can be major activities influencing aroma loss in jasmine rice. To reduce the aroma loss in a cost effective way, the Kasetwisai Agricultural Cooperative, Ltd. should focus on storage time and temperature in warehousing and transportation systems. In addition, the collaboration of the rice miller with supply chain partners should be encouraged to cut the logistics cost and to improve the quality of rice.
Keywords: Activity Based Costing; Aromatic Rice; Jasmine Rice; Logistics Cost; Value Chain
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