Abstract
Motivated by observing the importance of logistics cost in the cost structure of some products, this paper aims at multi-objective optimization of integrating supply chain network design with the selection of transportation modes (TMs) for a single-product four-echelon supply chain composed of suppliers, production plants, distribution centers (DCs) and customer zones. The key design decisions are the number, capacity and location of plants and DCs, the flow of products through the network, and the selection of TMs for each flow path. A bi-objective mixed integer linear programming model is first formulated. The two incompatible objectives are minimizing the total cost and maximizing the demand fill rate. The model is validated by applying to the case of the design of fresh apple supply chain. Then, a new metaheuristic, called multi-objective modified particle swarm optimization (MMPSO), is presented to find non-dominated solutions. A new modified binary PSO for updating binary variables along with the adaptive mutation is incorporated into the MMPSO. The MMPSO is compared with a multi-objective basic PSO (MBPSO) and the NSGA-Ⅱ against three small cases and six randomly generated medium and large size problems. The comparative results indicate that the MMPSO is better than the NSGA-Ⅱ and the MBPSO with respect to solution quality and computation efficiency for the problem.
Highlights
A supply chain (SC) is a network of organizations that supply raw materials, transform the raw materials into intermediate and final products, and distribute these products to customers
Since this study considers multi-objective integrated optimization of Supply chain network design (SCND) with the selection of transportation modes (TMs) using multi-objective particle swarm optimization (MoPSO) algorithm, this section deals with prior work related to all these areas
In this study we developed a new MoPSO, called multi-objective modified particle swarm optimization (MMPSO), to solve the SCND with transportation choices
Summary
A supply chain (SC) is a network of organizations that supply raw materials, transform the raw materials into intermediate and final products, and distribute these products to customers. Chain management covers all activities and storage of raw materials, work-in-process inventory, and finished goods from the suppliers to final consumption. It encompasses three decision levels: strategic, tactical and operational levels [16]. Chain network design (SCND) is to determine the configuration of a chain and deal with a variety of decisions. Once the configuration of a SC is determined, the focus shifts to decisions on tactical and operational aspects. The decisions may include tactical aspects like product allocation and transportation flows, as well as operational decisions such as fulfilling customers demand and the selection of transportation modes [35, 44, 43]
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