M U L T I-O B J E C T I V E S U S T A I N A B L E S U P P L Y C H A I N P L A N N I N G W I T H D E T E R I O R A T I N G P R O D U C T S
Author(s):
Abstract:
Supply Chain Management is an important part of Operations Strategy in many large organizations. The concept of competition has shifted from firm against firms to supply chain against supply chains. In recent years, the subject of supply chain sustainability, with economical, environmental and/or social values, has attracted attention in the academia and industry. This includes both forward and reverse supply chains. In Particular, for deteriorating products, such as fresh products, the issues of timely supply and disposal of the deteriorated products are of high concern. Transportation, or in broader view, logistics options also play a large role in both economic as well as social and environmental aspects of the supply chain management. Deterioration rates may be a function of both transportation and stocking of the product. Considerable amount of the existing literature has been devoted to modelling the economic aspects of supply chain, while still there is not a complete planning model including all aspects of the sustainable management of forward and reverse supply chains.
The goal of this paper is to develop a possibilistic mathematical model and propose a new replenishment policy in a centralized sustainable supply chain for deteriorating items. Inventory and transportation costs, as well as environmental and social impacts, are considered. Some transportation vehicle options are given which produce various pollution and greenhouse gas levels. Several variables are uncertain, such as the end-customer demand, the partial backordered ratio, and the deterioration rate. Not only deterioration occurs for in-stock inventories, but also deterioration during transportation is covered in the proposed model. The solution provides the best transportation modes and routes and the inventory policy by finding a balance between financial, environmental, and social criteria. In this way, we develop a linear multi-objective mathematical model and present a numerical example to demonstrate its applicability and effectiveness.
The goal of this paper is to develop a possibilistic mathematical model and propose a new replenishment policy in a centralized sustainable supply chain for deteriorating items. Inventory and transportation costs, as well as environmental and social impacts, are considered. Some transportation vehicle options are given which produce various pollution and greenhouse gas levels. Several variables are uncertain, such as the end-customer demand, the partial backordered ratio, and the deterioration rate. Not only deterioration occurs for in-stock inventories, but also deterioration during transportation is covered in the proposed model. The solution provides the best transportation modes and routes and the inventory policy by finding a balance between financial, environmental, and social criteria. In this way, we develop a linear multi-objective mathematical model and present a numerical example to demonstrate its applicability and effectiveness.
Keywords:
Language:
Persian
Published:
Industrial Engineering & Management Sharif, Volume:33 Issue: 1, 2017
Pages:
85 to 99
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