Abstract
Integrating strategic and tactical decisions to location-allocation and green inventory planning by considering e-commerce features will pave the way for supply chain managers. Therefore, this study provides an effective framework for making decisions related to different levels of the dual-channel supply chain. We provide a bi-objective location-allocation-inventory optimization model to design a dual-channel, multi-level supply chain network. The main objectives of this study are to minimize total cost and environmental impacts while tactical and strategic decisions are integrated. Demand uncertainty is also addressed using stochastic modeling, and inventory procedure is the periodic review (S, R). We consider many features in inventory modeling that play a very important role, such as lead time, shortage, inflation, and quality of raw materials, to adapt the model to the real conditions. Since a dual-channel supply chain is becoming more important for sustainable economic development and resource recovery, we combine online and traditional sales channels to design a network. We generate five test problems and solve them by using the augmented ε-constraint method. Also, the Grasshopper optimization algorithm was applied to solve the model in a reasonable time for a large size problem. In order to provide managerial insights and investigate the sensitivity of variables and problem objectives with respect to parameters, sensitivity analysis was performed.
Highlights
In today’s competitive economic environment, making the right decisions at the strategic and operational levels enables organizations to manage their logistics and supply activities more efficiently
On the one hand, allocating adequate capacity to suppliers enables the supply chain to increase the sustainability of environmental issues in addition to the economic aspect; on the other hand, increasing the capacity of distribution centers (DCs) has a considerable effect on reducing environmental impact as well as increasing the capacity of the dual-channel, but what leads to its further improvement is the capacity of DCs which is one of the important characteristics that affect supply chain outcomes
A bi-objective model was formulated for the optimization of location-allocation-inventory problem (LAIP)
Summary
Thereby, we provide a bi-objective model to solve the location-allocation-inventory problem (LAIP) in a dualchannel, multi-level supply chain. The main objectives of this model are to minimize total cost and environmental impacts while tactical and strategic decisions are integrated simultaneously This location-allocation-inventory problem can be formulated as a mixed-integer non-linear programming (MINLP) model. We investigate a location-allocation-inventory problem in a multilevel supply chain under (S, R) inventory policies, with considering stochastic demand and many important Features such as shortage, inflation, quality of raw materials, and positive lead time, which were ignored in most previous research. By using online sales channels and e-commerce activities that have been considered in the strategic and tactical decisions, we can develop a dual-channel supply chain and improve its sustainability.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
