Introduction
Our team has been tasked with designing an effective and efficient global supply chain involving rice in Myanmar. In this report, we will describe the decisions we made in designing this supply chain, and the rationale for these decisions.
Background
Myanmar is a nation located in Southeast Asia, bordered by China, Thailand, India, Laos and Bangladesh. It has a population of over 60 million, and a GDP of approximately 6.8 billion USD (estimated for 2013). Myanmar is known for its resources in jade and gems, oil, natural gas and other mineral resources.
Additionally, in the 1950’s and 1960’s, Myanmar was the world’s number one rice exporter. This is no longer true today, however.
For a number of decades, Myanmar has been relatively isolated from the world, mainly because of the internal political situation. Many countries imposed economic sanctions on Myanmar.
More recently, however, Myanmar has begun democratic reforms, and many countries have lifted their sanctions. Because of this new opening, many companies and investors are interested in doing business in Myanmar again. Foreign countries like Japan and Thailand are pouring money into Myanmar’s infrastructure, making import-export ventures more appealing for many products (including rice).
Location
The first factor we considered in designing our supply chain for Myanmar rice was location. Before we chose a location for the rice production itself, we needed to consider the major rice-producing regions in Myanmar. These regions are:
Ayeryawady
Bago
Yangon
Mon
Sagaing
The first four regions above (Ayeryawady, Bago, Yangon, and Mon) are located in Myanmar’s delta mostly adjacent to the Andaman Sea. The fifth region (Sagaing) is located inland, in the central area of Myanmar. (See Figure 1.)
Figure 1: Map of the major rice-growing areas of Myanmar (left)
Before 1998, there was very little rice production in