Abstract
Agriculture has enhanced both the industrial and the economic development of Taiwan. Although its economic contributions have declined over the years, agriculture remains essential to some people’s livelihoods. In today’s highly competitive world market, companies that only offer agricultural products with high quality and added value can survive. Food processing adds value to farm products, lengthens their shelf life, and widens their distribution area. Considering the uncertain global market demand and the high production cost of packed products, we propose a mixed-integer robust linear programming model under both single-period and multiple-period demands to enable logistics to be as flexible as possible and to cope with the possible risks. The objective is to find the optimal production and inventory levels for the products before and after packing for maximum total profit. Two simple numerical examples are presented to illustrate our model.