A multi-objective integrated optimisation model for facility location and order allocation problem in a two-level supply chain network
Hamzeh Amin-Tahmasbi (),
Sina Sadafi (),
Banu Y. Ekren () and
Vikas Kumar ()
Additional contact information
Hamzeh Amin-Tahmasbi: East of Guilan, University of Guilan
Sina Sadafi: University of Koshar
Banu Y. Ekren: Yasar University, Department of Industrial Engineering
Vikas Kumar: Bristol Business School, University of the West of England
Annals of Operations Research, 2023, vol. 324, issue 1, No 33, 993-1022
Abstract:
Abstract This study proposes a mixed-integer multi-objective integrated mathematical model solving facility location and order allocation optimisation problems simultaneously in a two-echelon supply chain network. The proposed problem is motivated by a factoryless concept and by providing a dynamic decision-making solution under a multi-period time horizon. Within the model, we also determine the optimal replenishment number of production facilities by the multi-objective functions. The multi-objective functions include minimisation of the total cost, rejected and late delivery units and, maximisation of the assessment score of the selected suppliers. The studied dynamic decision model is significant for the cost-efficient management of companies’ supply chain networks. The mixed-integer mathematical model is developed by the LP-metric method and it is solved by the GAMS optimisation software. Due to the NP-hard structure of the problem, for large-scale instances, we utilise the Multi-Objective Particle Swarm Optimisation (MOPSO) and Multi-Objective Vibration Damping Optimisation (MOVDO) heuristic solution approaches. Numerical results show that, for large-scale problems, the MOPSO method performs better in Pareto solutions and decreases run times. However, the MOVDO method performs better regarding the Mean Ideal Distance and the Number of Solutions Cover surface criterion. The developed solution approach by this paper is a generic model which can be applied for any two-level network for simultaneous optimisation of supplier selection, location determination of facilities and their replenishment amounts.
Keywords: Supply chain management; Facility location; MOPSO; MOVDO; Supplier selection (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://link.springer.com/10.1007/s10479-022-04635-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
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:spr:annopr:v:324:y:2023:i:1:d:10.1007_s10479-022-04635-1
Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479
DOI: 10.1007/s10479-022-04635-1
Access Statistics for this article
Annals of Operations Research is currently edited by Endre Boros
More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().