Misagh Rahbari, Seyed Hossein Razavi Hajiagha, Mahdi Raeei Dehaghi, Mahmoud Moallem and Farshid Riahi Dorcheh
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…
Abstract
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.
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Misagh Rahbari, Seyed Hossein Razavi Hajiagha, Hannan Amoozad Mahdiraji, Farshid Riahi Dorcheh and Jose Arturo Garza-Reyes
This study focuses on a specific method of meat production that involves carcass purchase and meat production by packing facilities with a novel two-stage model that…
Abstract
Purpose
This study focuses on a specific method of meat production that involves carcass purchase and meat production by packing facilities with a novel two-stage model that simultaneously considers location-routing and inventory-production operating decisions. The considered problem aims to reduce variable and fixed transportation and production costs, inventory holding cost and the cost of opening cold storage facilities.
Design/methodology/approach
The proposed model encompasses a two-stage model consisting of a single-echelon and a three-echelon many-to-many network with deterministic demand. The proposed model is a mixed-integer linear programming (MILP) model which was tested with the general algebraic modelling system (GAMS) software for a real-world case study in Iran. A sensitivity analysis was performed to examine the effect of retailers' holding capacity and supply capacity at carcass suppliers.
Findings
In this research, the number of products transferred at each level, the number of products held, the quantity of red meat produced, the required cold storage facilities and the required vehicles were optimally specified. The outcomes indicated a two percent (2%) decrease in cost per kg of red meat. Eventually, the outcomes of the first and second sensitivity analysis indicated that reduced retailers' holding capacity and supply capacity at carcass suppliers leads to higher total costs.
Originality/value
This research proposes a novel multi-period location-inventory-routing problem for the red meat supply chain in an emerging economy with a heterogeneous vehicle fleet and logistics decisions. The proposed model is presented in two stages and four-echelon including carcass suppliers, packing facilities, cold storage facilities and retailers.
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Ehsan Mohebban-Azad, Amir-Reza Abtahi and Reza Yousefi-Zenouz
This study aims to design a reliable multi-level, multi-product and multi-period location-inventory-routing three-echelon supply chain network, which considers disruption risks…
Abstract
Purpose
This study aims to design a reliable multi-level, multi-product and multi-period location-inventory-routing three-echelon supply chain network, which considers disruption risks and uncertainty in the inventory system.
Design/methodology/approach
A robust optimization approach is used to deal with the effects of uncertainty, and a mixed-integer nonlinear programming multi-objective model is proposed. The first objective function seeks to minimize inventory costs, such as ordering costs, holding costs and carrying costs. It also helps to choose one of the two modes of bearing the expenses of shortage or using the excess capacity to produce at the expense of each. The second objective function seeks to minimize the risk of disruption in distribution centers and suppliers, thereby increasing supply chain reliability. As the proposed model is an non-deterministic polynomial-time-hard model, the Lagrangian relaxation algorithm is used to solve it.
Findings
The proposed model is applied to a real supply chain in the aftermarket automotive service industry. The results of the model and the current status of the company under study are compared, and suggestions are made to improve the supply chain performance. Using the proposed model, companies are expected to manage the risk of supply chain disruptions and pay the lowest possible costs in the event of a shortage. They can also use reverse logistics to minimize environmental damage and use recycled goods.
Originality/value
In this paper, the problem definition is based on a real case; it is about the deficiencies in the after-sale services in the automobile industry. It considers the disruption risk at the first level of the supply chain, selects the supplier considering the parameters of price and disruption risk and examines surplus capacity over distributors’ nominal capacity.
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Bowen Miao, Xiaoting Shang, Kai Yang, Bin Jia and Guoqing Zhang
This paper studies the location-inventory problem (LIP) in pallet pooling systems to improve resource utilization and save logistics costs, which is a new extension of the…
Abstract
Purpose
This paper studies the location-inventory problem (LIP) in pallet pooling systems to improve resource utilization and save logistics costs, which is a new extension of the classical LIP and also an application of the LIP in pallet pooling systems.
Design/methodology/approach
A mixed-integer linear programming is established, considering the location problem of pallet pooling centers (PPCs) with multi-level capacity, multi-period inventory management and bi-directional logistics. Owing to the computational complexity of the problem, a hybrid genetic algorithm (GA) is then proposed, where three local searching strategies are designed to improve the problem-solving efficiency. Lastly, numerical experiments are carried out to validate the feasibility of the established model and the efficiency of the proposed algorithm.
Findings
The results of numerical experiments show that (1) the proposed model can obtain the integrated optimal solution of the location problem and inventory management, which is better than the two-stage model and the model with single-level capacity; (2) the total cost and network structure are sensitive to the number of PPCs, the unit inventory cost, the proportion of repairable pallets and the fixed transportation cost and (3) the proposed hybrid GA shows good performance in terms of solution quality and computational time.
Originality/value
The established model extends the classical LIP by considering more practical factors, and the proposed algorithm provides support for solving large-scale problems. In addition, this study can also offer valuable decision support for managers in pallet pooling systems.
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Leila Hashemi, Armin Mahmoodi, Milad Jasemi, Richard C. Millar and Jeremy Laliberté
This study aims to investigate a locating-routing-allocating problems and the supply chain, including factories distributor candidate locations and retailers. The purpose of this…
Abstract
Purpose
This study aims to investigate a locating-routing-allocating problems and the supply chain, including factories distributor candidate locations and retailers. The purpose of this paper is to minimize system costs and delivery time to retailers so that routing is done and the location of the distributors is located.
Design/methodology/approach
The problem gets closer to reality by adding some special conditions and constraints. Retail service start times have hard and soft time windows, and each customer has a demand for simultaneous delivery and pickups. System costs include the cost of transportation, non-compliance with the soft time window, construction of a distributor, purchase or rental of a vehicle and production costs. The conceptual model of the problem is first defined and modeled and then solved in small dimensions by general algebraic modeling system (GAMS) software and non-dominated sorting genetic algorithm II (NSGAII) and multiple objective particle swarm optimization (MOPSO) algorithms.
Findings
According to the solution of the mathematical model, the average error of the two proposed algorithms in comparison with the exact solution is less than 0.7%. Also, the algorithms’ performance in terms of deviation from the GAMS exact solution, is quite acceptable and for the largest problem (N = 100) is 0.4%. Accordingly, it is concluded that NSGAII is superior to MOSPSO.
Research limitations/implications
In this study, since the model is bi-objective, the priorities of decision makers in choosing the optimal solution have not been considered and each of the objective functions has been given equal importance according to the weighting methods. Also, the model has not been compared and analyzed in deterministic and robust modes. This is because all variables, except the one that represents the uncertainty of traffic modes, are deterministic and the random nature of the demand in each graph is not considered.
Practical implications
The results of the proposed model are valuable for any group of decision makers who care optimizing the production pattern at any level. The use of a heterogeneous fleet of delivery vehicles and application of stochastic optimization methods in defining the time windows, show how effective the distribution networks are in reducing operating costs.
Originality/value
This study fills the gaps in the relationship between location and routing decisions in a practical way, considering the real constraints of a distribution network, based on a multi-objective model in a three-echelon supply chain. The model is able to optimize the uncertainty in the performance of vehicles to select the refueling strategy or different traffic situations and bring it closer to the state of certainty. Moreover, two modified algorithms of NSGA-II and multiple objective particle swarm optimization (MOPSO) are provided to solve the model while the results are compared with the exact general algebraic modeling system (GAMS) method for the small- and medium-sized problems.
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Pankaj Kumar Detwal, Rajat Agrawal, Ashutosh Samadhiya, Anil Kumar and Jose Arturo Garza-Reyes
The literature that is presently available on sustainable supply chain management (SSCM) combining optimization and industry 4.0 techniques falls short in its depictions of the…
Abstract
Purpose
The literature that is presently available on sustainable supply chain management (SSCM) combining optimization and industry 4.0 techniques falls short in its depictions of the recent developments, budding pertinent areas and the importance of SSCM in the growth of industrial economies around the world. This article's main objective is to analyze current trends, highlight the latest initiatives and perform a meta-analysis of the literature that is currently accessible in the SSCM area with a special focus on optimization and industry 4.0 techniques. The paper also proposes a conceptual framework that will assist in illuminating how the ideas of optimization and industry 4.0 may contribute to realizing sustainability in supply chains.
Design/methodology/approach
The proposed study systematically reviews 85 research publications published between 2010 and 2022 in referenced peer-reviewed journals in diverse fields, including engineering, business and management, services and healthcare. Numerous categories are considered throughout the examination of the literature, including year-wise publications, prominent journals, type of research design, concerned industry and research technique used.
Findings
The study demonstrates a deeper comprehension of the literature in the field and its evolution throughout numerous industry sectors, which is helpful for both practitioners and academics. The results from the content analysis highlight various future research opportunities in the domain.
Originality/value
This is one of the first research articles that have attempted to establish, analyze and highlight the current trends and initiatives in the SSCM domain from an optimization and industry 4.0 techniques viewpoint. The cluster-based future research propositions also enhance the novelty of the study.
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Houtian Ge, Jing Yi, Stephan J. Goetz, Rebecca Cleary and Miguel I. Gómez
Using recent US regional data associated with food system operations, this study aims at building optimization and econometric models to incorporate varying influential factors on…
Abstract
Purpose
Using recent US regional data associated with food system operations, this study aims at building optimization and econometric models to incorporate varying influential factors on food hub location decisions and generate effective facility location solutions.
Design/methodology/approach
Mathematical optimization and econometric models have been commonly used to identify hub location decisions, and each is associated with specific strengths to handle uncertainty. This paper develops an optimization model and a hurdle model of the US fresh produce sector to compare the hub location solutions between these two modeling approaches.
Findings
Econometric modeling and mathematical optimization are complementary approaches. While there is a divergence between the results of the optimization model and the econometric model, the optimization solution is largely confirmed by the econometric solution. A combination of the results of the two models might lead to improved decision-making.
Practical implications
This study suggests a future direction in which model development can move forward, for example, to explore and expose how to make the existing modeling techniques easier to use and more accessible to decision-makers.
Social implications
The models and results provide information that is currently limited and is useful to help inform sustainable decisions of various stakeholders interested in the development of regional food systems, regional infrastructure investment and operational strategies for food hubs.
Originality/value
This study sheds light on how the application of complementary modeling approaches improves the effectiveness of facility location solutions. This study offers new perspectives on elaborating key features to encompass facility location issues by applying interdisciplinary approaches.
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Misagh Rahbari, Alireza Arshadi Khamseh and Yaser Sadati-Keneti
The Russia–Ukraine war has disrupted the wheat supply worldwide. Given that wheat is one of the most important agri-food products in the world, it is necessary to pay attention to…
Abstract
Purpose
The Russia–Ukraine war has disrupted the wheat supply worldwide. Given that wheat is one of the most important agri-food products in the world, it is necessary to pay attention to the wheat supply chain during the global crises. The use of resilience strategies is one of the solutions to face the supply chain disruptions. In addition, there is a possibility of multiple crises occurring in global societies simultaneously.
Design/methodology/approach
In this research, the resilience strategies of backup suppliers (BS) and inventory pre-prepositioning (IP) were discussed in order to cope with the wheat supply chain disruptions. Furthermore, the p-Robust Scenario-based Stochastic Programming (PRSSP) approach was used to optimize the wheat supply chain under conditions of disruptions from two perspectives, feasibility and optimality.
Findings
After implementing the problem of a real case in Iran, the results showed that the use of resilience strategy reduced costs by 9.33%. It was also found that if resilience strategies were used, system's flexibility and decision-making power increased. Besides, the results indicated that if resilience strategies were used and another crisis like the COVID-19 pandemic occurred, supply chain costs would increase less than when resilience strategies were not used.
Originality/value
In this study, the design of the wheat supply chain was discussed according to the wheat supply disruptions due to the Russia–Ukraine war and its implementation on a real case. In the following, various resilience strategies were used to cope with the wheat supply chain disruptions. Finally, the effect of the COVID-19 pandemic on the wheat supply chain in the conditions of disruptions caused by the Russia–Ukraine war was investigated.
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Leila Hashemi, Armin Mahmoodi, Milad Jasemi, Richard C. Millar and Jeremy Laliberté
In the present research, location and routing problems, as well as the supply chain, which includes manufacturers, distributor candidate sites and retailers, are explored. The…
Abstract
Purpose
In the present research, location and routing problems, as well as the supply chain, which includes manufacturers, distributor candidate sites and retailers, are explored. The goal of addressing the issue is to reduce delivery times and system costs for retailers so that routing and distributor location may be determined.
Design/methodology/approach
By adding certain unique criteria and limits, the issue becomes more realistic. Customers expect simultaneous deliveries and pickups, and retail service start times have soft and hard time windows. Transportation expenses, noncompliance with the soft time window, distributor construction, vehicle purchase or leasing, and manufacturing costs are all part of the system costs. The problem's conceptual model is developed and modeled first, and then General Algebraic Modeling System software (GAMS) and Multiple Objective Particle Swarm Optimization (MOPSO) and non-dominated sorting genetic algorithm II (NSGAII) algorithms are used to solve it in small dimensions.
Findings
According to the mathematical model's solution, the average error of the two suggested methods, in contrast to the exact answer, is less than 0.7%. In addition, the performance of algorithms in terms of deviation from the GAMS exact solution is pretty satisfactory, with a divergence of 0.4% for the biggest problem (N = 100). As a result, NSGAII is shown to be superior to MOSPSO.
Research limitations/implications
Since this paper deals with two bi-objective models, the priorities of decision-makers in selecting the best solution were not taken into account, and each of the objective functions was given an equal weight based on the weighting procedures. The model has not been compared or studied in both robust and deterministic modes. This is because, with the exception of the variable that indicates traffic mode uncertainty, all variables are deterministic, and the uncertainty character of demand in each level of the supply chain is ignored.
Practical implications
The suggested model's conclusions are useful for any group of decision-makers concerned with optimizing production patterns at any level. The employment of a diverse fleet of delivery vehicles, as well as the use of stochastic optimization techniques to define the time windows, demonstrates how successful distribution networks are in lowering operational costs.
Originality/value
According to a multi-objective model in a three-echelon supply chain, this research fills in the gaps in the link between routing and location choices in a realistic manner, taking into account the actual restrictions of a distribution network. The model may reduce the uncertainty in vehicle performance while choosing a refueling strategy or dealing with diverse traffic scenarios, bringing it closer to certainty. In addition, two modified MOPSO and NSGA-II algorithms are presented for solving the model, with the results compared to the exact GAMS approach for medium- and small-sized problems.
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Sara Nodoust, Mir Saman Pishvaee and Seyed Mohammad Seyedhosseini
Given the importance of estimating the demand for relief items in earthquake disaster, this research studies the complex nature of demand uncertainty in a vehicle routing problem…
Abstract
Purpose
Given the importance of estimating the demand for relief items in earthquake disaster, this research studies the complex nature of demand uncertainty in a vehicle routing problem in order to distribute first aid relief items in the post disaster phase, where routes are subject to disruption.
Design/methodology/approach
To cope with such kind of uncertainty, the demand rate of relief items is considered as a random fuzzy variable and a robust scenario-based possibilistic-stochastic programming model is elaborated. The results are presented and reported on a real case study of earthquake, along with sensitivity analysis through some important parameters.
Findings
The results show that the demand satisfaction level in the proposed model is significantly higher than the traditional scenario-based stochastic programming model.
Originality/value
In reality, in the occurrence of a disaster, demand rate has a mixture nature of objective and subjective and should be represented through possibility and probability theories simultaneously. But so far, in studies related to this domain, demand parameter is not considered in hybrid uncertainty. The worth of considering hybrid uncertainty in this study is clarified by supplementing the contribution with presenting a robust possibilistic programming approach and disruption assumption on roads.