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Facility location in responsive and flexible supply chain network design (SCND) considering outsourcing

Author

Listed:
  • Reza Babazadeh
  • Jafar Razmi
  • Reza Ghodsi

Abstract

In the last decade, environmental fluctuations of business activities have dictated to organisations to design their supply chains in an efficient way. Also, as regards the diverse needs of customers that is increasing day by day, the manufacturing and service industries cannot deal with these changes unless through contracting out some of their manufactured goods to improve their responsiveness, which is called outsourcing. This paper presents a multi-stage and multi-product mixed-integer linear programming (MILP) model to the responsive and flexible supply chain network design (SCND). The proposed model is able to consider outsourcing, transportation modes, flexibility, cross-docking issue and time monetary value, as a criterion to reduce delivery time, to improve responsiveness of supply chain. Computational results show the outsourcing process has significant effect on the number and location of facilities for opening. Sensitivity analysis illustrates the sensitivity of the proposed model to fixed opening costs, demand of customers and outsourcing costs.

Suggested Citation

  • Reza Babazadeh & Jafar Razmi & Reza Ghodsi, 2013. "Facility location in responsive and flexible supply chain network design (SCND) considering outsourcing," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 17(3), pages 295-310.
    • Handle: RePEc:ids:ijores:v:17:y:2013:i:3:p:295-310
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    Citations

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    Cited by:

    1. Marta Pérez-Pérez & Canan Kocabasoglu-Hillmer & Ana María Serrano-Bedia & María Concepción López-Fernández, 2019. "Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 1-23, December.
    2. M. Boronoos & M. Mousazadeh & S. Ali Torabi, 2021. "A robust mixed flexible-possibilistic programming approach for multi-objective closed-loop green supply chain network design," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(3), pages 3368-3395, March.
    3. Masoud Alinezhad & Iraj Mahdavi & Milad Hematian & Erfan Babaee Tirkolaee, 2022. "A fuzzy multi-objective optimization model for sustainable closed-loop supply chain network design in food industries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 8779-8806, June.
    4. Babazadeh, Reza, 2017. "Optimal design and planning of biodiesel supply chain considering non-edible feedstock," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 1089-1100.
    5. Martin Steinrücke & Wolfgang Albrecht, 2016. "A flow-to-equity approach to coordinate supply chain network planning and financial planning with annual cash outflows to an institutional investor," Business Research, Springer;German Academic Association for Business Research, vol. 9(2), pages 297-333, August.

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