Abstract
Background/Objectives: This study addresses the problem of sustainable supply chain network design for perishable products. Perishable products lose their value or deteriorate in a limited time, from the moment they are produced. Methods/Statistical analysis: A mathematical model is developed to design sustainable, single product, multi period, three-echelon supply network including manufacturer, warehouse, and retailer. The problem is formulated as mixed-integer nonlinear programming. Besides, the model is solved by non-linear Generalized Reduced Gradient solver in Excel. Findings: The behaviour of the model has been verified through solving several scenarios. The effect of demand on system behaviour has been studied. Novelty/Applications: The model considered inventory of perishable products in multi-periods. In addition, it adopts the concept of preventing the expiration of the perishable products, to minimize the environmental impact in addition to maximizing the profit to assure sustainability of the supply chain. The model is solved by non-linear Generalized Reduced Gradient solver in Excel. The proposed model considerably assists the supply chain organizations to design their network more efficiently. Keywords: Sustainability; Supply chain network design; perishable products; MINLP; Inventory; FIFO; expiration; Generalized Reduced Gradient solver
Highlights
There is a great importance to study the perishable product supply chain network design
This study addresses the problem of sustainable supply chain network design for perishable products
A quantity of 12,000 units will be transferred from the manufacturer to the warehouse and the retailer’s demand will be fulfilled with 12,000 units, following the First-in First-Out (FIFO) inventory policy, firstly by the 2,000 units stored from the previous period and with 10,000 out the 12,000 new units got in the second period
Summary
There is a great importance to study the perishable product supply chain network design. Perishability is mostly considered in food and healthcare industry where the products deteriorate during manufacturing, storage, and distribution. Perishable products lose their value in a certain time, from the moment they are produced. The goal behind the Sustainable Supply Chain Network Design (SSCND) is to balance between the different objectives of minimizing both environmental and social impacts and maximizing economic performance. Perishable products have a limited lifetime; storing products in warehouse should be continuously monitored in order to avoid waste and reaching expiration. This will have a significant impact on the environment
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