The paper deals with the dairy valorization problem. A new stochastic model for optimizing dairy valorization model is proposed. It takes into account the multipurpose and batch characteristics of dairies and employs the time resource distribution over the processing nodes and products. The dairy valorization model developed and analyzed in three scenarios. The first one refer to the definitive space, which indicates the lack of demand dependence on various factors and in the second as well as the third scenarios denote eliminate the space of certainty and it is to consider the quantity demanded of the products, quantity and quality of the incoming raw material (Raw Milk), respectively. Iran’s Kurdistan dairy supply chain is used as a case study. The results of the analysis will be presented in two ways, considering and non-considering of byproducts. The results reflect improved supply chain profit in case of using byproducts instead of discarding them. The model shows that, by utilizing any byproducts, while increasing supply chain profit, the amount of nutrient loss decreases. By entering space of certainty into an uncertainty, the chain's profit reduces, which indicating the importance of acting to reduce demand fluctuations in order to improve the overall supply chain profit.
