A novel hybrid method for supply chain optimization with capacity constraint and shipping option

Abstract

In a modern market, supply chain network design is considered as a strategic decision that provides the proper platform for cost management and increases the competitive edge of enterprise. In a five-tier supply chain, there are several facilities such as suppliers, manufacturers, warehouses, distribution centers, and retailers or customers. For product transportation from one facility to another, different types of options may be used. These options have variety price and the manager should do the best assignment to reduce the total cost. In this paper, we formulated an integer programming model for a five-tier supply chain with capacitated facility and multiple transportation option with fixed lead time. We also proposed a novel meta-heuristic solution methodology that combines the Taguchi's feature with artificial immune approach in order to solve the proposed model. The performance of the proposed solution methodology has been examined against a set of numeric instances and the obtained results are compared with those provided by hybrid genetic algorithm and Taguchi and artificial immune system. Results indicate that this methodology can make better results than previous solutions effectively.