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Due to opportunities for economic and social development in the biofuels market, improvement to the supply chain has become a relevant matter. In agro-industrial supply chains, procurement costs are highly relevant. Since sugarcane is a high performance raw material for ethanol production, this paper proposes a Mixed-Integer Linear Programming Model for cost optimization for harvesting, loading and transportation operations. The model determines the quantity of machines and workers to meet the biofuel plant requirements. Costs of resources for harvesting and loading as well as transportation costs from the land parcel to the production plant are minimized. Also, the model calculates the cost of penalties for shortages (unmet demand) and the cost of equipment idle time. The implementation of the model in a Peruvian biofuels company, showed a cost reduction of around 11 % when compared to the current costs.

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