scholarly journals Designing a new Medicine Supply Chain Network considering production technology policy using two novel heuristic algorithms

Author(s):  
Fariba Goodarzian ◽  
Hassan Hoseini-Nasab ◽  
Mehdi Toloo ◽  
Mohammad Bagher Fakhrzad

The role of medicines in health systems is increasing day by day. The medicine supply chain is a part of the health system that if not properly addressed, the concept of health in that community is unlikely to experience significant growth.  To fill gaps and available challenging in the medicine supply chain network (MSCN), in the present paper, efforts have been made to propose a location-production-distribution-transportation-inventory holding problem for a multi-echelon multi-product multi-period bi-objective MSCN network under production technology policy. To design the network, a mixed-integer linear programming (MILP) model capable of minimizing the total costs of the network and the total time the transportation is developed. As the developed model was NP-hard, several meta-heuristic algorithms are used and two heuristic algorithms, namely, Improved Ant Colony Optimization (IACO) and Improved Harmony Search (IHS) algorithms are developed to solve the MSCN model in different problems. Then, some experiments were designed and solved by an optimization solver called GAMS (CPLEX) and the presented algorithms to validate the model and effectiveness of the presented algorithms. Comparison of the provided results by the presented algorithms and the exact solution is indicative of the high-quality efficiency and performance of the proposed algorithm to find a near-optimal solution within reasonable computational time. Hence, the results are compared with commercial solvers (GAMS) with the suggested algorithms in the small-sized problems and then the results of the proposed meta-heuristic algorithms with the heuristic methods are compared with each other in the large-sized problems. To tune and control the parameters of the proposed algorithms, the Taguchi method is utilized. To validate the proposed algorithms and the MSCN model, assessment metrics are used and a few sensitivity analyses are stated, respectively. The results demonstrate the high quality of the proposed IACO algorithm.

2014 ◽  
Vol 2014 ◽  
pp. 1-17 ◽  
Author(s):  
Krystel K. Castillo-Villar ◽  
Neale R. Smith ◽  
José F. Herbert-Acero

This paper presents (1) a novel capacitated model for supply chain network design which considers manufacturing, distribution, and quality costs (named SCND-COQ model) and (2) five combinatorial optimization methods, based on nonlinear optimization, heuristic, and metaheuristic approaches, which are used to solve realistic instances of practical size. The SCND-COQ model is a mixed-integer nonlinear problem which can be used at a strategic planning level to design a supply chain network that maximizes the total profit subject to meeting an overall quality level of the final product at minimum costs. The SCND-COQ model computes the quality-related costs for the whole supply chain network considering the interdependencies among business entities. The effectiveness of the proposed solution approaches is shown using numerical experiments. These methods allow solving more realistic (capacitated) supply chain network design problems including quality-related costs (inspections, rework, opportunity costs, and others) within a reasonable computational time.


2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Jian Wang ◽  
Xueyan Wang ◽  
Mingzhu Yu

This paper studies a supply chain network design model with price competition. The supply chain provides multiple products for a market area in multiple periods. The model considers the location of manufacturers and retailers and assumes a probabilistic customer behavior based on an attraction function depending on both the location and the quality of the retailers. We aim to design the supply chain under the capacity constraint and maximize the supply chain profit in the competitive environment. The problem is formulated as a mixed integer nonlinear programming model. To solve the problem, we propose two heuristic algorithms—Simulated Annealing Search (SA) and Particle Swarm Optimization (PSO)—and numerically demonstrate the effectiveness of the proposed algorithms. Through the sensitivity analysis, we give some management insights.


Author(s):  
Fariba Goodarzian ◽  
davood shishebori ◽  
Hadi Nasseri ◽  
Faridreza Dadvar

One of the main topics discussed in a supply chain is the production-distribution problem. Producing and distributing the products plays a key role in reducing the costs of the chain. To design a supply chain, a network of efficient management and production-distribution decisions is essential. Accordingly, providing an appropriate mathematical model for such problems can be helpful in designing and managing supply chain networks. Mathematical formulations must be drawn close to the real world due to the importance of supply chain networks. This makes those formulations more complicated. In this study, a novel multi-objective formulation is devised for the production-distribution problem of a supply chain that consists of several suppliers, manufacturers, distributors, and different customers. Also, a Mixed Integer Linear Programming (MILP) mathematical model is proposed for designing a multi-objective and multi-period supply chain network. In addition, grey flexible linear programming (GFLP) is done for a multi-objective production-distribution problem in a supply chain network. The network is designed for the first time to cope with the uncertain nature of costs, demands, and capacity parameters. In this regard, due to the NP-hardness and complexity of problems and the necessity of using meta-heuristic algorithms, NSGA-II and Fast PGA algorithm are applied and compared in terms of several criteria that emphasize the quality and diversity of the solutions.


Author(s):  
Fariba Goodarzian ◽  
Davood Shishebori ◽  
Hadi Nasseri ◽  
Faridreza Dadvar

One of the main topics discussed in a supply chain is the production-distribution problem. Producing and distributing the products plays a key role in reducing the costs of the chain. To design a supply chain, a network of efficient management and production-distribution decisions is essential. Accordingly, providing an appropriate mathematical model for such problems can be helpful in designing and managing supply chain networks. Mathematical formulations must be drawn close to the real world due to the importance of supply chain networks. This makes those formulations more complicated. In this study, a novel multi-objective formulation is devised for the production-distribution problem of a supply chain that consists of several suppliers, manufacturers, distributors, and different customers. Also, a Mixed Integer Linear Programming (MILP) mathematical model is proposed for designing a multi-objective and multi-period supply chain network. In addition, grey flexible linear programming (GFLP) is done for a multi-objective production-distribution problem in a supply chain network. The network is designed for the first time to cope with the uncertain nature of costs, demands, and capacity parameters. In this regard, due to the NP-hardness and complexity of problems and the necessity of using meta-heuristic algorithms, NSGA-II and Fast PGA algorithm are applied and compared in terms of several criteria that emphasize the quality and diversity of the solutions.


2021 ◽  
Author(s):  
Fatemeh Mohebalizadehgashti

Traditional logistics management has not focused on environmental concerns when designing and optimizing food supply chain networks. However, the protection of the environment is one of the main factors that should be considered based on environmental protection regulations of countries. In this thesis, environmental concerns with a mathematical model are investigated to design and configure a multi-period, multi-product, multi-echelon green meat supply chain network. A multi-objective mixed-integer linear programming formulation is developed to optimize three objectives simultaneously: minimization of the total cost, minimization of the total CO2 emissions released from transportation, and maximization of the total capacity utilization. To demonstrate the efficiency of the proposed optimization model, a green meat supply chain network for Southern Ontario, Canada is designed. A solution approach based on augmented εε-constraint method is developed for solving the proposed model. As a result, a set of Pareto-optimal solutions is obtained. Finally, the impacts of uncertainty on the proposed model are investigated using several decision trees. Optimization of a food supply chain, particularly a meat supply chain, based on multiple objectives under uncertainty using decision trees is a new approach in the literature. Keywords: Meat supply chain; Decision tree; Multi-objective programming; Mixed-integer linear programming; Augmented εε-constraint.


2013 ◽  
Vol 4 (3) ◽  
pp. 1-31 ◽  
Author(s):  
Kanchan Das ◽  
Scott A. Dellana

This study proposes a Supplier Quality Affiliation (SQA) approach that is integrated into a mixed integer programming Strategic Supply Chain Management (SSCM) model for overall improvement of the supply chain business process. A pool of acceptable quality and high quality suppliers are affiliated using multi-dimensional quality attributes for the supplier operation parameters in the SQA model. Based on the pre-defined partnering attributes, the SQA model next identifies a select group of high quality suppliers that can be converted into partners. The outcome of the SQA model is then integrated into the SSCM model for ensuring input quality while providing several options for overall business gains of the supply chain members, which include suppliers, manufacturers, and retailers. Applicability of the SQA model is investigated using a real world case study and the SSCM model is illustrated with a numerical example using random data.


2019 ◽  
Vol 3 (2) ◽  
pp. 110-130 ◽  
Author(s):  
Dave C. Longhorn ◽  
Joshua R. Muckensturm

Purpose This paper aims to introduce a new mixed integer programming formulation and associated heuristic algorithm to solve the Military Nodal Capacity Problem, which is a type of supply chain network design problem that involves determining the amount of capacity expansion required at theater nodes to ensure the on-time delivery of military cargo. Design/methodology/approach Supply chain network design, mixed integer programs, heuristics and regression are used in this paper. Findings This work helps analysts at the United States Transportation Command identify what levels of throughput capacities, such as daily processing rates of trucks and railcars, are needed at theater distribution nodes to meet warfighter cargo delivery requirements. Research limitations/implications This research assumes all problem data are deterministic, and so it does not capture the variations in cargo requirements, transit times or asset payloads. Practical implications This work gives military analysts and decision makers prescriptive details about nodal capacities needed to meet demands. Prior to this work, insights for this type of problem were generated using multiple time-consuming simulations often involving trial-and-error to explore the trade space. Originality/value This work merges research of supply chain network design with military theater distribution problems to prescribe the optimal, or near-optimal, throughput capacities at theater nodes. The capacity levels must meet delivery requirements while adhering to constraints on the proportion of cargo transported by mode and the expected payloads for assets.


Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-25 ◽  
Author(s):  
Daniel Arturo Olivares Vera ◽  
Elias Olivares-Benitez ◽  
Eleazar Puente Rivera ◽  
Mónica López-Campos ◽  
Pablo A. Miranda

This paper develops a location-allocation model to optimize a four-echelon supply chain network, addressing manufacturing and distribution centers location, supplier selection and flow allocation for raw materials from suppliers to manufacturers, and finished products for end customers, while searching for system profit maximization. A fractional-factorial design of experiments is performed to analyze the effects of capacity, quality, delivery time, and interest rate on profit and system performance. The model is formulated as a mixed-integer linear programming problem and solved by using well-known commercial software. The usage of factorial experiments combined with mathematical optimization is a novel approach to address supply chain network design problems. The application of the proposed model to a case study shows that this combination of techniques yields satisfying results in terms of both its behavior and the obtained managerial insights. An ANOVA analysis is executed to quantify the effects of each factor and their interactions. In the analyzed case study, the transportation cost is the most relevant cost component, and the most relevant opportunity for profit improvement is found in the factor of quality. The proposed combination of methods can be adapted to different problems and industries.


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