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Application of Operations Research in Halal Food Industry

Conference Paper · December 2014

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 Application of Operations Research in Halal Food
Industry
Nurul ‘Azwa bt Kamarudin
Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA Melaka, Melaka City Campus
•Introduction •Objective
Halal means permissible, lawful by Islamic law. The processes of Halal certified foods must To plan a halal meat management particularly in welfare of the animals in Halal Critical
be clean and shariah compliance; from the suppliers: which includes core feeding, Points 2 of the halal meat chain towards standardizing halal certification globally, the
slaughtering and handling animals and animal products, technologies and equipments objective of the study is to:
used, the processed food manufacturers, logistic with the purpose of transporting the • Identify the components of environments of animal welfare in the husbandries of
goods must be segregated from non-halal goods to wholesalers, finally to the consumers. independent farmers
! • compare the environments of animal welfare, in the husbandries of independent farmers
Top exporters of meat and live animals to OIC countries are, in fact, non-OIC countries: between leader country and OIC countries
USA, followed by Brazil, Netherlands, Germany and Australia, whereas top OIC import • establish the strengths, weaknesses, opportunities, threats that exist in the
countries are Saudi Arabia, Egypt, UAE, Turkey and Malaysia [12]. environments of animal welfare, in the husbandries of independent farmers between
! Country USD Billion
leader country and OIC countries.
! !
! 1 US 17.3 •Methodology
! The aim of the study is to identify Strengths, Weaknesses, Opportunities, Threats that exists
! 2 Brazil 14.4 in the environments of animal welfare, in the husbandries of independent farmers between
! leader country and OIC countries in the Halal Critical Points 2 of the halal meat
! 3 Netherland 12.3 chain.Research found by [14] that independent farmers posed the most challenging task in
! tracing the existence of halal Supply Chain Management because most of these farmers were
! 4 Germany 11.8
involved in small scale activities and did not have the financial capabilities to establish their
! 5 Australia 8.5 own halal Supply Chain Management as compared to the much bigger commercial farms by
! having the clearest and well organized chains from feed quality to the retailer.
! !
Table 1: Top Export Countries to OIC Countries-Meat & Live Animals, 2012 [12] Typical benchmarking methodology Application in Halal meat industry
! !
Most of publications in Halal industry focuses on either Muslim and non-Muslim consumers
! Identify problem areas Environments of animal welfare in the
independent farmers’ husbandries

especially the consumer behaviour and the awareness of consumers towards Halal
!
products ([2];[4];[5];[8];[9]) .
!
! Identify other industries that
! ! have similar processes GCC countries, Malaysia and Indonesia

[11] first introduced halal meat chain framework using the HACCP (Hazard Analysis and !
Critical Control Points) incorporated with Islamic dietary laws where several halal critical !
points are included to guarantee the halal status of the meat. ! Identify organisations that are
! ! leaders in these areas New Zealand

! !
! !
! ! Survey companies for measures
and practices
! !
! !
! !
! Visit the “best practice”

! ! companies to identify leading

edge practices
Diagram 2: Application of O.R
! ! (Benchmarking[15]) in Halal
! ! meat Industry
! ! Implement new and improved
! !
practices
!
! New Zealand will be the chosen leader in this study, to be benchmarked with the other OIC
! countries, because New Zealand, currently, has received the best halal service provider of
! halal red meat and red meat products, in the Halal Journal Award 2011 [3].
! SWOT analysis will identify barriers, weaknesses, what should be improved and decide the
! direction for the possibility of developing a global halal standards. The detailed SWOT matrix
! [7]: Internal
! ! Strengths Weaknesses
! ! Opportunities Use strengths to take Overcome
! ! advantage of weaknesses to
! ! External opportunities gain
! ! opportunities
! ! Threats Use strengths to avoid Minimize
Diagram 1: The halal meat chain and the Halal Control Points (HCP) based on [11] ! threats weaknesses Table 3: SWOT
and avoid Analysis [7]
! ! threats
Operation research (OR) is a discipline of applying advanced analytical method to make •Conclusion
help better decision. [13] validated the methodologies of OR are utilized in various areas This paper is a preliminary study in applying operations research method in order to develop
in developed countries: a global halal standards of meat and live stocks among the OIC and non-OIC countries, by
! Methodology of OR Area & Description applying O.R method, benchmarking in particular, of the environments of animal welfare
! O p t i m i z a t i o n a n d Management husbandries prior to slaughtering, one of the elements in Halal Critical Points.
Simulation Hospital management in Kuwait [1] !
•References
A n a l y t i c H i e r a r c h y Infrastructure [1] Ahmed, M.A., Alkhamis, T.M., 2009. Simulation optimization for an emergency department healthcare unit in Kuwait. European Journal of Operational
Process (AHP) -selection of companies supplying water in Research 198, 936–942.
Indonesia [10]
[2] Ambali, A. R., & Bakar, A. N. (2014). People’s Awareness on Halal Foods and Products: Potential Issues for Policy-makers. Procedia - Social and
Benchmarking method [6] studied on cross national analysis on main Behavioral Sciences, 121(September 2012), 3–25. doi:10.1016/j.sbspro.2014.01.1104
differences of innovation systems in Italy and
[3] Anonymous (2011). Congratulations winners of the Halal Journal Awards 2011. The Halal Journal(40), 39
other countries: US, Canada, France and
Belgium. [4] Bonne, K., & Verbeke, W. (2008). Muslim consumer trust in halal meat status and control in Belgium. Meat Science, 79(1), 113–23.
[5] Bonne, K., Vermeir, I., Bergeaud-Blackler, F., & Verbeke, W. (2007). Determinants of halal meat consumption in France. British Food Journal, 109(5),
Table 2: Applications of OR in various areas 367–386. doi:10.1108/0070700710746786
[6] Caiazza, R. (2014). Benchmarking of business incubators. Benchmarking: An International Journal, 21(6), 1062–1069. doi:10.1108/BIJ-01-2013-0011
[7] David, Fred R. (1993). Strategic Management, 4th Ed. New York: Macmillan Publishing Company.
[8] Hidayatun, N., Razak, A., Wahab, R. A., Harun, N., & Johar, N. (2012). A Comparison Of The Halal Awareness Level Between University Students And
Non University Students, (November), 20–22.
[9] Khalek, A. A. (2014). Young consumers’ attitude towards halal food outlets and Jakim's halal certification in malaysia. Procedia - Social and Behavioral
Sciences, 121(September 2012), 26–34. doi:10.1016/j.sbspro.2014.01.1105

Photo Nurul ‘Azwa bt Kamarudin! [10] Peniwati, K., Brenner, W., 2008. Multi-decisions rating model: Establishing rescue policies for regional drinking water companies (PDAMs) in
Indonesia. European Journal of Operational Research 186, 1127–1136.

nurul.azwa700@gmail.com! [11] Riaz, M. N. and M. M. Chaudry (2004). Halal Food Production. Boca Raton, Louisiana: CRC Press.
[12] Thomson Reuters. (2013). State of the global islamic economy 2013 report (p. 192).

+6016-3575881 [13]White, L., Smith, H., & Currie, C. (2011). OR in developing countries: A review. European Journal of Operational Research, 208(1), 1–11.
[14] Zailani, S. H. M., Ahmad, Z. A., Wahid, N. A., Othman, R., & Fernando, Y. (2010). Recommendations to strengthen halal food supply chain for food
industry in Malaysia. Journal of Agribusiness Marketing, Special Edition, 91–105
[15] http://en.wikipedia.org/wiki/Benchmarking

!

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