An efficient stochastic programming approach for solving integrated multi-objective transportation and inventory management problem using goodness of fit

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Srikant Gupta ◽  
Sachin Chaudhary ◽  
Prasenjit Chatterjee ◽  
Morteza Yazdani
Keyword(s):  
Supply Chain ◽  
Transportation Cost ◽  
Programming Approach ◽  
Main Concern ◽  
Management Problem ◽  
Order Allocation ◽  
Inventory Cost ◽  
Content Type ◽  
Multi Objective ◽  
Proposed Model

PurposeLogistics is the part of the supply chain (SC) that plans, executes and handles forward and reverse movement and storage of products, services and related information, in order to respond to customers' needs effectively and efficiently. The main concern for logistics is to ensure that the correct product is placed at the right time. This paper introduces a linear model of shipping focused on decision-making, which includes configuration of shipping network, choosing of transport means and transfer of individual customer shipments through a particular transport system.Design/methodology/approachIn this study, authors try to address the problem of supply chain network (SCN) where the primary goal is to determine the appropriate order allocation of products from different sources to different destinations. They also seek to minimize total transportation cost and inventory cost by simultaneously determining optimal locations, flows and shipment composition. The formulated problem of getting optimal allocation turns out to be a problem of multi-objective programming, and it is solved by using the max-addition fuzzy goal programming approach, for obtaining optimal order allocation of products. Furthermore, the problem demand and supply parameters have been considered random in nature, and the maximum likelihood estimation approach has been used to assess the unknown probabilistic distribution parameters with a specified probability level (SPL).FindingsA case study has also been applied for examining the effectiveness and applicability of the developed multi-objective model and the proposed solution methods. Results of this study are very relevant for the manufacturing sector in particular, for those facing logistics issues in SCN. It enables researchers and managers to cope with various types of uncertainty and logistics risks associated with SCN.Research limitations/implicationsThe principal contribution of the proposed model is the improved modelling of transportation and inventory, which are affected by different characteristics of SCN. To demonstrate computational information of the suggested methods and proposed model, a case illustration of SCN is provided. Also, environmentalism is increasingly becoming a significant global concern. Hence, the concept proposed could be extended to include environmental aspects as an objective function or constraint.Originality/valueEfficient integration of logistical cost components, such as transportation costs, inventory costs, with mathematical programming models is an important open issue in logistics optimization. This study expands conventional facility location models to incorporate a range of logistic system elements such as transportation cost and different types of inventory cost, in a multi-product, multi-site network. The research is original and is focused on case studies of real life.

A multi-objective supplier selection model for green supply chain network under uncertainty

2018 ◽  
Vol 13 (3) ◽  
pp. 605-625 ◽  
Author(s):  
Mohammad Khalilzadeh ◽  
Hadis Derikvand
Keyword(s):  
Supply Chain ◽  
Supplier Selection ◽  
Objective Function Value ◽  
Selection Problem ◽  
Green Supply Chain ◽  
Content Type ◽  
Multi Objective ◽  
Proposed Model ◽  
Objective Model ◽  
Supplier Selection Problem

Purpose Globalization of markets and pace of technological change have caused the growing importance of paying attention to supplier selection problem. Therefore, this study aims to choose the best suppliers by providing a mathematical model for the supplier selection problem considering the green factors and stochastic parameters. This paper aims to propose a multi-objective model to identify optimal suppliers for a green supply chain network under uncertainty. Design/methodology/approach The objective of this model is to select suppliers considering total cost, total quality parts and total greenhouse gas emissions. Also, uncertainty is tackled by stochastic programming, and the multi-objective model is solved as a single-objective model by the LP-metric method. Findings Twelve numerical examples are provided, and a sensitivity analysis is conducted to demonstrate the effectiveness of the developed mathematical model. Results indicate that with increasing market numbers and final product numbers, the total objective function value and run time increase. In case that decision-makers are willing to deal with uncertainty with higher reliability, they should consider whole environmental conditions as input parameters. Therefore, when the number of scenarios increases, the total objective function value increases. Besides, the trade-off between cost function and other objective functions is studied. Also, the benefit of the stochastic programming approach is proved. To show the applicability of the proposed model, different modes are defined and compared with the proposed model, and the results demonstrate that the increasing use of recyclable parts and application of the recycling strategy yield more economic savings and less costs. Originality/value This paper aims to present a more comprehensive model based on real-world conditions for the supplier selection problem in green supply chain under uncertainty. In addition to economic issue, environmental issue is considered from different aspects such as selecting the environment-friendly suppliers, purchasing from them and taking the probability of defective finished products and goods from suppliers into account.

scholarly journals The LR-Type Fuzzy Multi-Objective Vendor Selection Problem in Supply Chain Management

Mathematics ◽  
2020 ◽  
Vol 8 (9) ◽  
pp. 1621
Author(s):  
Irfan Ali ◽  
Armin Fügenschuh ◽  
Srikant Gupta ◽  
Umar Muhammad Modibbo
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Real Life ◽  
Selection Problem ◽  
Programming Approach ◽  
Vendor Selection ◽  
Chain Management ◽  
Multi Objective ◽  
Fuzzy Environment ◽  
Proposed Model

Vendor selection is an established problem in supply chain management. It is regarded as a strategic resource by manufacturers, which must be managed efficiently. Any inappropriate selection of the vendors may lead to severe issues in the supply chain network. Hence, the desire to develop a model that minimizes the combination of transportation, deliveries, and ordering costs under uncertainty situation. In this paper, a multi-objective vendor selection problem under fuzzy environment is solved using a fuzzy goal programming approach. The vendor selection problem was modeled as a multi-objective problem, including three primary objectives of minimizing the transportation cost; the late deliveries; and the net ordering cost subject to constraints related to aggregate demand; vendor capacity; budget allocation; purchasing value; vendors’ quota; and quantity rejected. The proposed model input parameters are considered to be LR fuzzy numbers. The effectiveness of the model is illustrated with simulated data using R statistical package based on a real-life case study which was analyzed using LINGO 16.0 optimization software. The decision on the vendor’s quota allocation and selection under different degree of vagueness in the information was provided. The proposed model can address realistic vendor selection problem in the fuzzy environment and can serve as a useful tool for multi-criteria decision-making in supply chain management.

Multi-objective robust optimization for multi-stage-multi-product agile closed-loop supply chain under uncertainty in the context of circular economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saeid Jafarzadeh Ghoushchi ◽  
Iman Hushyar ◽  
Kamyar Sabri-Laghaie
Keyword(s):  
Supply Chain ◽  
Robust Optimization ◽  
Circular Economy ◽  
Closed Loop ◽  
Mixed Integer ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Multi Objective ◽  
Multi Stage ◽  
Proposed Model

PurposeA circular economy (CE) is an economic system that tries to eliminate waste and continually use resources. Due to growing environmental concerns, supply chain (SC) design should be based on the CE considerations. In addition, responding and satisfying customers are the challenges managers constantly encounter. This study aims to improve the design of an agile closed-loop supply chain (CLSC) from the CE point of view.Design/methodology/approachIn this research, a new multi-stage, multi-product and multi-period design of a CLSC network under uncertainty is proposed that aligns with the goals of CE and SC participants. Recycling of goods is an important part of the CLSC. Therefore, a multi-objective mixed-integer linear programming model (MILP) is proposed to formulate the problem. Besides, a robust counterpart of multi-objective MILP is offered based on robust optimization to cope with the uncertainty of parameters. Finally, the proposed model is solved using the e-constraint method.FindingsThe proposed model aims to provide the strategic choice of economic order to the suppliers and third-party logistic companies. The present study, which is carried out using a numerical example and sensitivity analysis, provides a robust model and solution methodology that are effective and applicable in CE-related problems.Practical implicationsThis study shows how all upstream and downstream units of the SC network must work integrated to meet customer needs considering the CE context.Originality/valueThe main goal of the CE is to optimize resources, reduce the use of raw materials, and revitalize waste by recycling. In this study, a comprehensive model that can consider both SC design and CE necessities is developed that considers all SC participants.

The multi-objective supplier selection problem with fuzzy parameters and solving the order allocation problem with coverage

2020 ◽  
Vol 15 (3) ◽  
pp. 705-725
Author(s):  
Mohammad Khalilzadeh ◽  
Arya Karami ◽  
Alborz Hajikhani
Keyword(s):  
Supply Chain ◽  
Combinatorial Optimization ◽  
Supplier Selection ◽  
Multiple Objectives ◽  
Selection Problem ◽  
Content Type ◽  
Multi Objective ◽  
Proposed Model ◽  
Supplier Selection Problem ◽  
Fuzzy Parameters

Purpose This study aims to deal with supplier selection problem. The supplier selection problem has significantly become attractive to researchers and practitioners in recent years. Many real-world supply chain problems are assumed as multiple objectives combinatorial optimization problems. Design/methodology/approach In this paper, the authors propose a multi-objective model with fuzzy parameters to select suppliers and allocate orders considering multiple periods, multiple resources, multiple products and two-echelon supply chain. The objective functions consist of total purchase costs, transportation, order and on-time delivery, coverage and the weights of suppliers. Distance-based partial and general coverage of suppliers makes the number of orders of products more realistic. In this model, the weights of suppliers are determined by fuzzy Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method, as a multi-criteria decision analysis method, in the objective function. Also, the authors consider the parameters related to delays as triangular fuzzy numbers. Findings A small-sized numerical example is provided to clearly show the proposed model. The exact epsilon constraint method is used to solve this given multi-objective combinatorial optimization problem. Subsequently, the sensitivity analysis is conducted to testify the proposed model. The obtained results demonstrate the validity of the proposed multiple objectives mixed integer mathematical programming model and the efficiency of the solution approach. Originality/value In real-life situations, supplier selection parameters are uncertain and incomplete. Hence, the fuzzy set theory is used to tackle uncertainty. In this paper, a multi-objective supplier selection problem is formulated taking into consideration the coverage of suppliers and suppliers’ weights. Integrating coverage of suppliers to select and allocate the order to them can be mentioned as the main contribution of this study. The proposed model considers the delay from suppliers as fuzzy parameters.

Logistic planning for pharmaceutical supply chain using multi-objective optimization model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Mahdi Ershadi ◽  
Mohamad Sajad Ershadi
Keyword(s):  
Supply Chain ◽  
Objective Function ◽  
Optimization Model ◽  
Multi Objective Optimization ◽  
Pharmaceutical Supply Chain ◽  
Content Type ◽  
Multi Objective ◽  
Proposed Model ◽  
Different Types ◽  
Logistic Planning

Purpose Appropriate logistic planning for the pharmaceutical supply chain can significantly improve many financial and performance aspects. To this aim, a multi-objective optimization model is proposed in this paper that considers different types of pharmaceuticals, different vehicles with determining capacities and multi-period logistic planning. This model can be updated based on new information about resources and newly identified requests. Design/methodology/approach The main objective function of the proposed model in this paper is minimizing the unsatisfied prioritized requests for pharmaceuticals in the network. Besides, the total transportation activities of different types of vehicles and related costs are considered as other objectives. Therefore, these objectives are optimized hierarchically in the proposed model using the Lexicographic method. This method finds the best value for the first objective function. Then, it tries to optimize the second objective function while maintaining the optimality of the first objective function. The third objective function is optimized based on the optimality of other objective functions, as well. A non-dominated sorting genetic algorithm II-multi-objective particle swarm optimization heuristic method is designed for this aim. Findings The performances of the proposed model were analyzed in different cases and its results for different problems were shown within the framework of a case study. Besides, the sensitivity analysis of results shows the logical behavior of the proposed model against various factors. Practical implications The proposed methodology can be applied to find the best logistic plan in real situations. Originality/value In this paper, the authors have tried to use a multi-objective optimization model to guide and correct the pharmaceutical supply chain to deal with the related requests. This is important because it can help managers to improve their plans.

An integrated production-distribution planning with a routing problem and transportation cost discount in a supply chain

2019 ◽  
Vol 39 (5) ◽  
pp. 783-802 ◽  
Author(s):  
Behzad Karimi ◽  
Mahsa Ghare Hassanlu ◽  
Amir Hossein Niknamfar
Keyword(s):  
Supply Chain ◽  
Heuristic Algorithms ◽  
Planning Problem ◽  
Distribution Planning ◽  
Content Type ◽  
Integrated Production ◽  
Multi Objective ◽  
Proposed Model ◽  
Production Distribution ◽  
Problem Instances

Purpose The motivation behind this research refers to the significant role of integration of production-distribution plans in effective performance of supply chain networks under fierce competition of today’s global marketplace. In this regard, this paper aims to deal with an integrated production-distribution planning problem in deterministic, multi-product and multi-echelon supply chain network. The bi-objective mixed-integer linear programming model is constructed to minimize not only the total transportation costs but also the total delivery time of supply chain, subject to satisfying retailer demands and capacity constraints where quantity discount on transportation costs, fixed cost associated with transportation vehicles usage and routing decisions have been included in the model. Design/methodology/approach As the proposed mathematical model is NP-hard and that finding an optimum solution in polynomial time is not reasonable, two multi-objective meta-heuristic algorithms, namely, non-dominated sorting genetic algorithm II (NSGAII) and multi-objective imperialist competitive algorithm (MOICA) are designed to obtain near optimal solutions for real-sized problems in reasonable computational times. The Taguchi method is then used to adjust the parameters of the developed algorithms. Finally, the applicability of the proposed model and the performance of the solution methodologies in comparison with each other are demonstrated for a set of randomly generated problem instances. Findings The practicality and applicability of the proposed model and the efficiency and efficacy of the developed solution methodologies were illustrated through a set of randomly generated real-sized problem instances. Result. In terms of two measures, the objective function value and the computational time were required to get solutions. Originality/value The main contribution of the present work was addressing an integrated production-distribution planning problem in a broader view, by proposing a closer to reality mathematical formulation which considers some real-world constraints simultaneously and accompanied by efficient multi-objective meta-heuristic algorithms to provide effective solutions for practical problem sizes.

Business management in the football industry from a supply chain management perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhaleh Memari ◽  
Abbas Rezaei Pandari ◽  
Mohammad Ehsani ◽  
Shokufeh Mahmudi
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Business Management ◽  
Relationship Management ◽  
Flow Management ◽  
Manufacturing Firm ◽  
Chain Management ◽  
Content Type ◽  
Proposed Model ◽  
Football Industry

PurposeTo understand the football industry in its entirety, a supply chain management (SCM) approach is necessary. This includes the study of suppliers, consumers and their collaborations. The purpose of this study was to present a business management model based on supply chain management.Design/methodology/approachData were collected through in-depth interviews with 12 academic and executive football experts. After three steps of open, axial and selective coding based on grounded theory with a paradigmatic approach, the data were analysed, and a football supply chain management (FSCM) was developed. The proposed model includes three managerial components: upstream suppliers, the manufacturing firm, and downstream customers.FindingsThe football industry sector has three parts: upstream suppliers, manufacturing firm/football clubs and downstream customers. We proposed seven parts for the managerial processes of football supply chain management: event/match management, club management, resource and infrastructure management, customer relationship management, supplier relationship management, cash flow management and knowledge and information flow management. This model can be used for configuration, coordination and redesign of business operations as well as the development of models for evaluation of the football supply chain's performance.Originality/valueThe proposed model of a football supply chain management, with the existing literature and theoretical review, created a synergistic outcome. This synergy is presented in the linkage of the players in this chain and interactions between them. This view can improve the management of industry productivity and improve the products quality.

Designing a sustainable supply chain network for producing high-value products from waste glass

2021 ◽  
pp. 0734242X2199466
Author(s):  
Naeme Zarrinpoor
Keyword(s):  
Supply Chain ◽  
Greenhouse Gas Emission ◽  
Fuzzy Programming ◽  
Solution Procedure ◽  
Waste Glass ◽  
Worker Safety ◽  
Programming Approach ◽  
Supply Chain Network ◽  
Sustainable Supply Chain ◽  
Proposed Model

This paper aims to design a supply chain network for producing double glazed glass from the recycling of waste glass. All three pillars of sustainability are taken into consideration. The economic objective tries to maximize total profits. The environmental objective considers the energy consumption, the generated waste, the greenhouse gas emission, the water consumption, and the fuel consumption of vehicles. The social objective addresses created job opportunities, the worker safety, the regional development, the worker benefit, and training hours. To solve the model, a two-stage framework based on the group best-worst method and an interactive fuzzy programming approach is developed. The proposed model is validated through a real case study based on waste glass management in the city of Shiraz. It is revealed that when sustainable development goals are approached, a great degree of improvement will be attained in environmental and social aspects without a significant decrease in the economic sustainability. The results also demonstrate that the locations of glass recycling centres are different under economic, environmental, and social pillars, and the proposed model yields an optimal system configuration with a proper satisfaction degree of all objectives. Moreover, applying the proposed solution procedure enables system designers to obtain the most desirable trade-off between different aspects of sustainability.

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