Inventory routing problem for hazardous and deteriorating items in the presence of accident risk with transshipment option

Ali Timajchi, Seyed Mohammad Javad Mirzapour Al-E-Hashem and Yacine Rekik
Additional contact information
Ali Timajchi: EM - EMLyon Business School

Post-Print from HAL

Abstract: In this study, we address an Inventory Routing Problem for hazardous and deteriorating pharmaceutical items in a healthcare network. Each hospital's demand is assumed to be deterministic but time varying over a finite planning horizon. Demand can be satisfied through a supply network, either from the main central pharmacy, or from other related hospitals' drugstores by allowing the transshipment option. The medicines deteriorate under a constant rate during the storage period. The proposed model is a bi-objective mixed integer mathematical programming. The first objective aims to minimize the total cost of logistics including ordering, transportation, delivery, pickup, shortage and inventory holding costs. The second objective function attempts to minimize the maximum accident loss during distribution among all periods. To consider the accident loss, for each route, two essential parameters are estimated based on historical data; the occurrence probability and severity index of accident. The model therefore attempts to utilize the best configuration of the routes and transshipment option to satisfy the demand while minimizing the costs and accident loss simultaneously. Several numerical examples are generated and solved by CPLEX and compared with the solutions of an efficient Hybrid Genetic Algorithm (HGA). The results show that the transshipment option not only can be used as a lever to increase the economic supply network performance through saving the routes, but also it can help the system to avoid risky routes.

Keywords: Inventory Routing Problem; Deteriorating items; Transshipment; Accident risk; Hybrid genetic algorithm (search for similar items in EconPapers)
Date: 2019-03-01
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Published in International Journal of Production Economics, 2019, 209, 302-315 p

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:hal-02312116

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().