The economic relationships of essential oil production as a basis for supply chain modeling

Abstract

This article reveals that essential oil production is a complex system with a large number of economic ties arising in the process of growing and processing as well as distribution of products made from essential oils raw materials. Multileveled manufacturing process of essential oils products requires coordination of all the elements to reduce costs in the entire supply chain. It is proposed to use mathematical modeling of the supply chain based on the method of main faces, which allows to take into account the specifics of the problem and makes it possible to use a variety of combinatorial and heuristic algorithms.