Abstract

The possibilities of applying Operations Research (O.R.) techniques in the design of real-world systems are vast. The optimization and design of the supply chain network (SCN) is one of the relevant topics that has directed the attention of many scholars. Sound decisions in this regard, including the proper selection of the facility’s location, transportation modes and routes and inventory management policies, can noticeably improve the systems performance. Over 380 articles published between 2005 and 2016 in the ISI/Web of Science database have applied advanced O.R. techniques in SCN optimization studies. This paper offers a systematic review of these published contributions by focusing on two categories of O.R. approaches most recently applied for the design of SC systems: integrated mathematical modeling and simulation-optimization (S-O) frameworks. A taxonomy analysis of the mentioned approaches is presented based on the supply chain elements. A bibliometric analysis is also conducted to provide technical insights into the possible gaps in the field. Moreover, the relevant studies on SC sustainability are highlighted. The research results are supportive of the S-O frameworks as either an alternative approach or an effective solution method for the integrated problems. The research outcomes can provide researchers in the field with useful details of the integrated problems and S-O frameworks as the most recent O.R. methodologies in the field of SC optimization.

Highlights

  • In a globalized and highly competitive business environment, supply chain management (SCM) has become more prominent than ever before, because the competitiveness of a company is strongly dependent on the performance of its supply chain (SC)

  • Among the wide variety of S-O frameworks that have been developed under the large S-O family, simulation-based optimization, simulation optimization and optimization-based simulation frameworks are more distinct based on the technical features

  • A good example of this type is the study by Shahi et al [133], which is placed in optimization-based simulation frameworks according to our categorization, the authors termed it as a simulation-based approach

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Summary

Introduction

In a globalized and highly competitive business environment, supply chain management (SCM) has become more prominent than ever before, because the competitiveness of a company is strongly dependent on the performance of its supply chain (SC). Simulation can provide a more detailed overview of the overall system in a user-friendly manner, it is not a proper tool for the optimization of real-world and large-scale systems These deficiencies necessitate the development of new approaches to overcome them. The literature on integrated mathematical models and simulation-optimization (S-O) approaches has only become popular during the past few years, because the conventional methods are no longer effective in the design of complex systems. The position of the S-O frameworks needs to be clarified relative to the integrated mathematical problems To this end, this paper reviews the published contributions in the mentioned fields accompanied with a bibliometric analysis, in order to give insights into promising research directions for the future studies. The S-O frameworks and integrated problems in SCN design and optimization are compared and contrasted, and the study conclusions and suggestions for the future research directions are presented

Overview
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Location Routing Problems
Inventory Routing Problems
Location Inventory Problems
Simulation-Optimization
Simulation-Based Optimization
Optimization-Based Simulation
Studies on Sustainability
Findings
Conclusions
Full Text
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