Stochastic inventory-routing problem with lateral transshipment for perishable product

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Parviz Fattahi ◽  
Mehdi Tanhatalab

Purpose This study aims to design a supply chain network in an uncertain environment while exists two options for distribution of the perishable product and production lot-sizing is concerned. Design/methodology/approach Owing to the complexity of the mathematical model, a solution approach based on a Lagrangian relaxation (LR) heuristic is developed which provides good-quality upper and lower bounds. Findings The model output is discussed through various examples. The introduction of some enhancements and using some heuristics results in better outputs in the solution procedure. Practical implications This paper covers the modeling of some real-world problems in which demand is uncertain and managers face making some concurrent decisions related to supply chain management, transportation and logistics and inventory control issues. Furthermore, considering the perishability of product in modeling makes the problem more practically significant as these days there are many supply chains handling dairy and other fresh products. Originality/value Considering uncertainty, production, transshipment and perishable product in the inventory-routing problem makes a new variant that has not yet been studied. The proposed novel solution is based on the LR approach that is enhanced by some heuristics and some valid inequalities that make it different from the current version of the LR used by other studies.

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Misagh Rahbari ◽  
Seyed Hossein Razavi Hajiagha ◽  
Mahdi Raeei Dehaghi ◽  
Mahmoud Moallem ◽  
Farshid Riahi Dorcheh

Purpose In this paper, multi-period location–inventory–routing problem (LIRP) considering different vehicles with various capacities has been investigated for the supply chain of red meat. The purpose of this paper is to reduce variable and fixed costs of transportation and production, holding costs of red meat, costs of meeting livestock needs and refrigerator rents. Design/methodology/approach The considered supply chain network includes five echelons. Demand considered for each customer is approximated as deterministic using historical data. The modeling is performed on a real case. The presented model is a linear mixed-integer programming model. The considered model is solved using general algebraic modeling system (GAMS) software for data set of the real case. Findings A real-world case is solved using the proposed method. The obtained results have shown a reduction of 4.20 per cent in final price of red meat. Also, it was observed that if the time periods changed from month to week, the final cost of meat per kilogram would increase by 43.26 per cent. Originality/value This paper presents a five-echelon LIRP for the meat supply chain in which vehicles are considered heterogeneous. To evaluate the capability of the presented model, a real case is solved in Iran and its results are compared with the real conditions of a firm, and the rate of improvement is presented. Finally, the impact of the changed time period on the results of the solution is examined.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdieh Masoumi ◽  
Amir Aghsami ◽  
Mohammad Alipour-Vaezi ◽  
Fariborz Jolai ◽  
Behdad Esmailifar

PurposeDue to the randomness and unpredictability of many disasters, it is essential to be prepared to face difficult conditions after a disaster to reduce human casualties and meet the needs of the people. After the disaster, one of the most essential measures is to deliver relief supplies to those affected by the disaster. Therefore, this paper aims to assign demand points to the warehouses as well as routing their related relief vehicles after a disaster considering convergence in the border warehouses.Design/methodology/approachThis research proposes a multi-objective, multi-commodity and multi-period queueing-inventory-routing problem in which a queuing system has been applied to reduce the congestion in the borders of the affected zones. To show the validity of the proposed model, a small-size problem has been solved using exact methods. Moreover, to deal with the complexity of the problem, a metaheuristic algorithm has been utilized to solve the large dimensions of the problem. Finally, various sensitivity analyses have been performed to determine the effects of different parameters on the optimal response.FindingsAccording to the results, the proposed model can optimize the objective functions simultaneously, in which decision-makers can determine their priority according to the condition by using the sensitivity analysis results.Originality/valueThe focus of the research is on delivering relief items to the affected people on time and at the lowest cost, in addition to preventing long queues at the entrances to the affected areas.


Mathematics ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 382 ◽  
Author(s):  
Muhammad Imran ◽  
Muhammad Salman Habib ◽  
Amjad Hussain ◽  
Naveed Ahmed ◽  
Abdulrahman M. Al-Ahmari

This paper presents a multi-objective, multi-period inventory routing problem in the supply chain of perishable products under uncertain costs. In addition to traditional objectives of cost and greenhouse gas (GHG) emission minimization, a novel objective of priority index maximization has been introduced in the model. The priority index quantifies the qualitative social aspects, such as coordination, trust, behavior, and long-term relationships among the stakeholders. In a multi-echelon supply chain, the performance of distributor/retailer is affected by the performance of supplier/distributor. The priority index measures the relative performance index of each player within the supply chain. The maximization of priority index ensures the achievement of social sustainability in the supply chain. Moreover, to model cost uncertainty, a time series integrated regression fuzzy method is developed. This research comprises of three phases. In the first phase, a mixed-integer multi-objective mathematical model while considering the cost uncertainty has been formulated. In order to determine the parameters for priority index objective function, a two-phase fuzzy inference process is used and the rest of the objectives (cost and GHG) have been modeled mathematically. The second phase involves the development of solution methodology. In this phase, to solve the mathematical model, a modified interactive multi-objective fuzzy programming has been employed that incorporates experts’ preferences for objective satisfaction based on their experiences. Finally, in the third phase, a case study of the supply chain of surgical instruments is presented as an example. The results of the case provide optimal flow of products from suppliers to hospitals and the optimal sequence of the visits of different vehicle types that minimize total cost, GHG emissions, and maximizes the priority index.


2013 ◽  
Vol 2013 ◽  
pp. 1-10 ◽  
Author(s):  
Yanhui Li ◽  
Hao Guo ◽  
Lin Wang ◽  
Jing Fu

Facility location, inventory control, and vehicle routes scheduling are critical and highly related problems in the design of logistics system for e-business. Meanwhile, the return ratio in Internet sales was significantly higher than in the traditional business. Many of returned merchandise have no quality defects, which can reenter sales channels just after a simple repackaging process. Focusing on the existing problem in e-commerce logistics system, we formulate a location-inventory-routing problem model with no quality defects returns. To solve this NP-hard problem, an effective hybrid genetic simulated annealing algorithm (HGSAA) is proposed. Results of numerical examples show that HGSAA outperforms GA on computing time, optimal solution, and computing stability. The proposed model is very useful to help managers make the right decisions under e-supply chain environment.


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