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

Author

Listed:
  • Peyman Taki

    (Iran University of Science and Technology)

  • Farnaz Barzinpour

    (Iran University of Science and Technology)

  • Ebrahim Teimoury

    (Iran University of Science and Technology)

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.

Suggested Citation

  • Peyman Taki & Farnaz Barzinpour & Ebrahim Teimoury, 2016. "Risk-pooling strategy, lead time, delivery reliability and inventory control decisions in a stochastic multi-objective supply chain network design," Annals of Operations Research, Springer, vol. 244(2), pages 619-646, September.
    • Handle: RePEc:spr:annopr:v:244:y:2016:i:2:d:10.1007_s10479-016-2115-6
    DOI: 10.1007/s10479-016-2115-6
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    References listed on IDEAS

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    Cited by:

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    5. Jihai Zhang & Zhile Wang & Fan Ren, 2019. "Optimization of humanitarian relief supply chain reliability: a case study of the Ya’an earthquake," Annals of Operations Research, Springer, vol. 283(1), pages 1551-1572, December.

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