Risk-pooling strategy, lead time, delivery reliability and inventory control decisions in a stochastic multi-objective supply chain network design

Peyman Taki (), Farnaz Barzinpour () and Ebrahim Teimoury ()
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Peyman Taki: Iran University of Science and Technology
Farnaz Barzinpour: Iran University of Science and Technology
Ebrahim Teimoury: Iran University of Science and Technology

Annals of Operations Research, 2016, vol. 244, issue 2, No 17, 619-646

Abstract: Abstract A three-echelon supply chain network design is considered and a multi-objective mixed integer non-linear problem is modeled. Risk-pooling, lead time between facilities and the concept of the reliability are used to modeling. The objectives of the model are minimization of the supply chain’s total cost and maximization the delivery reliability, which can be equal to minimize the risk of not delivering the products with regard to stochastic demand. To solve the model a heuristic hierarchical algorithm is presented. Numerical examples are considered to test and verify the Pareto front. The results show the effectiveness and efficiency of the heuristic algorithm.

Keywords: Supply chain network design; Risk-pooling; Inventory control; Delivery reliability; Multi-objective model; Chance constraint programming (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1007/s10479-016-2115-6

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