Shared warehouse as an inter-supply chain cooperation strategy to reduce the time-dependent deterioration costs

Mojtaba Arab Momeni and Mehdi Bagheri

Socio-Economic Planning Sciences, 2022, vol. 82, issue PA

Abstract: Deterioration is one of the main concerns of many food and drug products. To reduce the effects of this phenomenon, various strategies have been proposed so far. In this paper, the collaboration of distributors in two different supply chains using a shared warehouse and its impacts on the deterioration of products which is time-dependent are investigated. Moreover, innovative algorithms are proposed to extract the solution of the models in the non-integrated and integrated supply chains. Next, the cooperative game theory is used to share the benefits of the cooperation between distributors. The numerical results of the paper indicate the efficiency of the proposed strategy in reducing the cost and deterioration of the supply chains. Furthermore, to demonstrate the efficiency of the proposed model in different real-world problems, four possible categories of the deterioration rate are scrutinized. The results of this investigation denote that the strategy has high effectiveness in all categories while in the category that the deterioration rate is a linear function of the time, the saving in the deterioration cost using the strategy is greatest. Also, conducting a sensitivity analysis, it is revealed that the greater the difference in the ordering cost of distributors, the greater the effectiveness of the strategy in reducing supply chain costs.

Keywords: Time-sensitive deterioration; Inter-supply chain cooperation; Shared distribution warehouse; Cooperative game theory (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0038012121000628
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:soceps:v:82:y:2022:i:pa:s0038012121000628

DOI: 10.1016/j.seps.2021.101070

Access Statistics for this article

Socio-Economic Planning Sciences is currently edited by Barnett R. Parker

More articles in Socio-Economic Planning Sciences from Elsevier
Bibliographic data for series maintained by Catherine Liu ().