Abstract

This paper presents a new bi-objective mathematical model to design a build-to-order supply chain (BTO-SC) network. In this paper, the demand of customers (dealers) is lead-time dependent and the time-sensitive parameter of the lead time is also dynamic and time-dependent. The objectives are to minimize the supply chain network cost and the number of lost demands, respectively. This paper integrates procurement, production and distribution problems to consider the trade-off between lead time, logistic cost, and the lost demands derived from lead time in the BTO-SC. Due to the NP-hard nature of the proposed model, a new hybrid meta-heuristic algorithm is presented. The proposed model is validated by GAMS software, and some test problems generated at random are solved to demonstrate the performance of the proposed meta-heuristic algorithm. To present the applicability of the proposed model, a real case study is presented and some sensitivity analyses are conducted to develop managerial insights.

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