A bi-objective integrated transportation and inventory management under a supply chain network considering multiple distribution networks

Abstract

In order to respond to the customer’s needs effectively and efficiently, logistics is characterized as a part of the supply chain that executes and handles forward and reverse movement and storage of products, services, and related data. An efficient logistic network is needed for the supply chain that executes forward and reverses products’ movement. This study resolves the supply chain network’s logistic problem to determine the appropriate order allocation of products from multiple plants, warehouses, and distributors to minimize total transportation and inventory costs by simultaneously determining optimal locations, flows, shipment composition, and shipment cycle times. The multi-objective logistic cost minimizes through the value function approach for obtaining the optimal order allocation. An actual data-based case study has been applied to examine the effectiveness of the multi-objective supply chain network. These results are very relevant for the manufacturing sectors, particularly those facing the logistics issue in the supply chain network. The findings indicate the optimal logistic costs. The results enable managers to cope with various types of logistics risks.