A green location-inventory-routing optimization model with simultaneous pickup and delivery under disruption risks

Abstract

This study aims to design supply chain networks by considering strategic and operational decisions, increasing network efficiency, and reducing costs. Optimizing strategic decisions such as location of facilities, and operational decisions such as vehicle routing, greatly affect the network’s greenness. In addition, simultaneous pickup and delivery (P&D) and disturbance management increase the network’s sustainability. Therefore, this research proposes an optimization model to design a green location-inventory-routing model with simultaneous P&D under disruption risks. The proposed model aims to minimize lost demands, and the network’s total costs are considered budget constraints. A scenario-based approach is applied to overcome the demand uncertainty and risks caused by the centers’ capacity disruptions. Seven problems of different sizes are generated using a simulation algorithm, and these problems investigate the effectiveness of the developed optimization model. Finally, the budget sensitivity analysis confirms the correctness of the presented model performance.