A note on bi-objective optimization for sustainable supply chain network design in omnichannel

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Weidong Lei ◽  
Dandan Ke ◽  
Pengyu Yan ◽  
Jinsuo Zhang ◽  
Jinhang Li

PurposeThis paper aims to correct the existing mixed integer programming (MIP) model proposed by Yadav et al. (2019) [“Bi-objective optimization for sustainable supply chain network design in omnichannel.”, Journal of Manufacturing Technology Management, Vol. 30 No. 6, pp. 972–986].Design/methodology/approachThis paper first presents a counterexample to show that the existing MIP model is incorrect and then proposes an improved mixed integer linear programming (MILP) model for the considered problem. Last, a numerical experiment is conducted to test our improved MILP model.FindingsThis paper demonstrates that the formulations of the facility capacity constraints and the product flow balance constraints in the existing MIP model are incorrect and incomplete. Due to this reason, infeasible solutions could be identified as feasible ones by the existing MIP model. Hence, the optimal solution obtained with the existing MIP model could be infeasible. A counter-example is used to verify our observations. Computational results verify the effectiveness of our improved MILP model.Originality/valueThis paper gives a complete and correct formulation of the facility capacity constraints and the product flow balance constraints, and conducts other improvements on the existing MIP model. The improved MILP model can be easily implemented and would help companies to have more effective distribution networks under the omnichannel environment.

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prem Chhetri ◽  
Mahsa Javan Nikkhah ◽  
Hamed Soleimani ◽  
Shahrooz Shahparvari ◽  
Ashkan Shamlou

PurposeThis paper designs an optimal closed-loop supply chain network with an integrated forward and reverse logistics to examine the possibility of remanufacturing end-of-life (EoL) ships.Design/methodology/approachExplanatory variables are used to estimate the number of EoL ships available in a closed-loop supply chain network. The estimated number of EoL ships is used as an input in the model and then it is solved by a mixed-integer linear programming (MILP) model of the closed-loop supply chain network to minimise the total logistic costs. A discounted payback period formula is developed to calculate the length of time to recoup an investment based on the investment's discounted cash flows. Existing ship wrecking industry clusters in the Western region of India are used as the case study to apply the proposed model.FindingsThe MILP model has optimised the total logistics costs of the closed-loop supply network and ascertained the optimal number and location of remanufacturing for building EoL ships. The capital and variable costs required for establishing and operating remanufacturing centres are computed. To remanufacture 30 ships a year, the discounted payback period of this project is estimated to be less than two years.Practical implicationsShip manufacturing businesses are yet to re-manufacture EoL ships, given high upfront capital expenditure and operational challenges. This study provides management insights into the costs and benefits of EoL ship remanufacturing; thus, informing the decision-makers to make strategic operational decisions.Originality/valueThe design of an optimal close loop supply chain network coupled with a Bayesian network approach and discounted payback period formula for the collection and remanufacturing of EoL ships provides a new integrated perspective to ship manufacturing.


Author(s):  
Reza Lotfi ◽  
Bahareh Kargar ◽  
Seyed Hosein Hoseini ◽  
Sima Nazari ◽  
Soroush Safavi ◽  
...  

Omega ◽  
2015 ◽  
Vol 54 ◽  
pp. 11-32 ◽  
Author(s):  
Majid Eskandarpour ◽  
Pierre Dejax ◽  
Joe Miemczyk ◽  
Olivier Péton

2019 ◽  
Vol 31 (3) ◽  
pp. 467-490 ◽  
Author(s):  
Asama Alglawe ◽  
Andrea Schiffauerova ◽  
Onur Kuzgunkaya ◽  
Itad Shiboub

Purpose The purpose of this paper is to explore the impact of the cost of quality (COQ) expenditure allocations on a capacitated supply chain (SC) network. Design/methodology/approach This paper proposes a non-linear optimization model which integrates the opportunity cost (OC) (i.e. customer satisfaction cost), into the COQ with consideration of the QL in the supply chain network design decisions. In addition, it examines the effect of considering an investment at each SC echelon to ensure the best overall QL. A numerical example is presented to illustrate the behavior of the model. Findings The results show how the QL, COQ and facility location decisions change when incorporating the OC, investments and transportation costs into the SC model. Originality/value The novelty of this paper is that it considers the effect of OC, investment at each echelon and transportation costs on SC design by minimizing the overall spending on the COQ. These issues have not been explored, and for that reason, this paper contributes to the understanding of the critical factors that optimizes the SC COQ.


2017 ◽  
Vol 254 (1-2) ◽  
pp. 533-552 ◽  
Author(s):  
Xiaoge Zhang ◽  
Andrew Adamatzky ◽  
Felix T. S. Chan ◽  
Sankaran Mahadevan ◽  
Yong Deng

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reza Ehtesham Rasi ◽  
Mehdi Sohanian

Purpose The purpose of this paper is to design and optimize economic and environmental dimensions in a sustainable supply chain (SSC) network. This paper developed a mixed-integer linear programing (MILP) model to incorporate economical and environmental data for multi-objective optimization of the SSC network. Design/methodology/approach The overall objective of the present study is to use high-quality raw materials, at the same time the lowest amount of pollution emission and the highest profitability is achieved. The model in the problem is solved using two algorithms, namely, multi-objective genetic and multi-objective particle swarm. In this research, to integrate sustainable supplier selection and optimization of sustainability performance indicators in supply chain network design considering minimization of cost and time and maximization of sustainability indexes of the system. Findings The differences found between the genetic algorithms (GAs) and the MILP approaches can be explained by handling the constraints and their various logics. The solutions are contrasted with the original crisp model based on either MILP or GA, offering more robustness to the proposed approach. Practical implications The model is applied to Mega Motor company to optimize the sustainability performance of the supply chain i.e. economic (cost), social (time) and environmental (pollution of raw material). The research method has two approaches, namely, applied and mathematical modeling. Originality/value There is limited research designing and optimizing the SSC network. This study is among the first to integrate sustainable supplier selection and optimization of sustainability performance indicators in supply chain network design considering minimization of cost and time and maximization of sustainability indexes of the system.


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