Robust and resilient supply chain network design considering risks in food industry: flavour industry in Iran

Abstract

ABSTRACT Nowadays, shareholders are being encouraged to enhance supply chain risk management in order to deal with several disruptive and operational risks. Producing spice and flavor is one of the high-risk industries as the main raw material is spice and its quality is variable and strongly depends on suppliers, seeds, and climate. Having a constant quality of spices and producing a flavor that satisfies every customer’s demand is intricate. Therefore, these companies encountered a variety of goods which increased complexity and uncertainty in supply, processing time, and demand. To come up with risks and uncertainties, in this paper a robust bi-objective multi-product mathematical model is developed to consider resiliency and uncertainty in a multi-period, multi-item supply chain network design simultaneously. The first objective function maximizes total profits when the second one maximizes the total score of resiliency in which Fuzzy Analytic Hierarchy Process (AHP) and Fuzzy Multi-Objective Optimization on the Basis of Ratio Analysis (MOORA) have been used to obtain the four resiliency factors weights for the objective function. We proposed an approach for making coordination between production planning, distribution, supplier selection, and order allocation in a flavor plant. The -constraint method is used to obtain Pareto solutions for a real case in Iran. Finally, sensitivity analysis has been done for tracking the trade-off between optimization and robustness with different robust parameters and investigating unmet demand and benefits of resilience consideration.