Abstract

Supply chain network design problem is increasingly showing its importance, especially the perishable supply chain. This research develops a multi-objective mathematical model to design four-echelon intermodal multi-product perishable supply chain configuration in order to ensure a balance of the three pillars of sustainable development: economy, environment, and society. The optimization objective functions of the model are, respectively, minimizing costs, delivery time, emissions, and the supply-demand mismatch in time. The model addresses particular problems in the supply chain of fresh fruits, which is more challenging compared to other types of perishable products due to its seasonal characteristics. The study proposes a new approach that combines and standardizes the above objective functions into a single weighted objective function. The solution from the model supports the decision-making process at both strategic and tactical levels. Strategically, the model supports decisions about the location, size of facilities, product flows, and workforce level. Tactically, the decision variables provide information on harvest time, delivery time, the delivery route, and mode of transport. To demonstrate its practical applicability, the model is applied to Mekong Delta region, Vietnam, where a variety of fruit types, large yields, and high distribution demand in this region make designing a shared supply chain desirable for its overall economic, environmental, and social concerns. Moreover, sensitivity analysis regarding weights of different objectives is performed to assess possible changes in supply chain configurations. Application of this model to other perishable products, the addition of modes of transport, social policy, and uncertainty parameters may be suggested for future research.

Highlights

  • Introduction published maps and institutional affilIn the last two decades, consumers are more aware of the negative impact of their current eating habits and lifestyle

  • This study addresses all the issues mentioned above by a synthesis approach: (1) Developing a multiple objective mixed integer programming (MIP) model for the four-echelon multi-product intermodal sustainable fresh fruit supply chain network design problem

  • Minimizing total delivery time is the second objective function of the MIP which is described in Equation (2)

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Summary

Supply Chain Network Design

The rapid development of the globalization of production and trade have created a great motivation for the study of supply chain management. For regions that have enacted legal system on the environment, the emissions are translated into a form of costs such as taxes and penalties In this way, single-target optimization models that are related to cost can reduce the environmental impact of the supply chain design problem [16]. The solution proposes the facility location of a supply chain which satisfy the criteria of cost, environmental impact, regional advantage, and investment company’s preference, simultaneously [17]. Tactical and operational decisions need more attention to increase supply chain competitiveness [14] This competitiveness can be analyzed by price, customer satisfaction, product quality, supply capacity, and so on. Operational and tactical solutions such as transport planning, modes of transport in each area, and workforce scheduling under certain or uncertain conditions of parameters are considered the way to optimize the supply [19]

Perishable Supply Chain Network Design
Sustainable Perishable Supply Chain Network Design
Literature
Methodology
Sets and Indices
Parameters and Decision Variables
H Ain εn start
Single Objective Functions
C S M N store store
Weighted Balancing Objective Function
Model Constraints
Case Study
Objective
Experiments
11. Scenario’s
14. Proportion
15. Proportion
Conclusions
Full Text
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