IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v324y2023i1d10.1007_s10479-022-04635-1.html
   My bibliography  Save this article

A multi-objective integrated optimisation model for facility location and order allocation problem in a two-level supply chain network

Author

Listed:
  • Hamzeh Amin-Tahmasbi

    (East of Guilan, University of Guilan)

  • Sina Sadafi

    (University of Koshar)

  • Banu Y. Ekren

    (Yasar University, Department of Industrial Engineering
    Cranfield University, School of Management)

  • Vikas Kumar

    (Bristol Business School, University of the West of England)

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.

Suggested Citation

  • Hamzeh Amin-Tahmasbi & Sina Sadafi & Banu Y. Ekren & Vikas Kumar, 2023. "A multi-objective integrated optimisation model for facility location and order allocation problem in a two-level supply chain network," Annals of Operations Research, Springer, vol. 324(1), pages 993-1022, May.
    • Handle: RePEc:spr:annopr:v:324:y:2023:i:1:d:10.1007_s10479-022-04635-1
    DOI: 10.1007/s10479-022-04635-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-022-04635-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-022-04635-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mohammed, Ahmed & Harris, Irina & Govindan, Kannan, 2019. "A hybrid MCDM-FMOO approach for sustainable supplier selection and order allocation," International Journal of Production Economics, Elsevier, vol. 217(C), pages 171-184.
    2. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    3. Mohammad Saeid Atabaki & Mohammad Mohammadi & Bahman Naderi, 2017. "Hybrid Genetic Algorithm and Invasive Weed Optimization via Priority Based Encoding for Location-Allocation Decisions in a Three-Stage Supply Chain," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(02), pages 1-44, April.
    4. Feng, Bo & Fan, Zhi-Ping & Li, Yanzhi, 2011. "A decision method for supplier selection in multi-service outsourcing," International Journal of Production Economics, Elsevier, vol. 132(2), pages 240-250, August.
    5. Vincent F. Yu & Nur Mayke Eka Normasari & Huynh Trung Luong, 2015. "Integrated Location-Production-Distribution Planning in a Multiproducts Supply Chain Network Design Model," Mathematical Problems in Engineering, Hindawi, vol. 2015, pages 1-13, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhen, Lu, 2014. "A three-stage optimization model for production and outsourcing under China’s export-oriented tax policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 1-20.
    2. Becker, Tristan & Lier, Stefan & Werners, Brigitte, 2019. "Value of modular production concepts in future chemical industry production networks," European Journal of Operational Research, Elsevier, vol. 276(3), pages 957-970.
    3. Venn, Tyron J. & Dorries, Jack W. & McGavin, Robert L., 2021. "A mathematical model to support investment in veneer and LVL manufacturing in subtropical eastern Australia," Forest Policy and Economics, Elsevier, vol. 128(C).
    4. Sauvey, Christophe & Melo, Teresa & Correia, Isabel, 2019. "Two-phase heuristics for a multi-period capacitated facility location problem with service-differentiated customers," Technical Reports on Logistics of the Saarland Business School 16, Saarland University of Applied Sciences (htw saar), Saarland Business School.
    5. Zhinan Li & Qinming Liu & Chunming Ye & Ming Dong & Yihan Zheng, 2022. "Achieving Resilience: Resilient Price and Quality Strategies of Fresh Food Dual-Channel Supply Chain Considering the Disruption," Sustainability, MDPI, vol. 14(11), pages 1-24, May.
    6. M. Fattahi & M. Mahootchi & S. M. Moattar Husseini, 2016. "Integrated strategic and tactical supply chain planning with price-sensitive demands," Annals of Operations Research, Springer, vol. 242(2), pages 423-456, July.
    7. Hasani, Aliakbar & Khosrojerdi, Amirhossein, 2016. "Robust global supply chain network design under disruption and uncertainty considering resilience strategies: A parallel memetic algorithm for a real-life case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 20-52.
    8. Sabet, Ehsan & Yazdani, Baback & Kian, Ramez & Galanakis, Kostas, 2020. "A strategic and global manufacturing capacity management optimisation model: A Scenario-based multi-stage stochastic programming approach," Omega, Elsevier, vol. 93(C).
    9. Jesus Gonzalez-Feliu, 2013. "Vehicle Routing in Multi-Echelon Distribution Systems with Cross-Docking: A Systematic Lexical-Metanarrative Analysis," Post-Print halshs-00834573, HAL.
    10. Majid Eskandarpour & Pierre Dejax & Olivier Péton, 2019. "Multi-Directional Local Search for Sustainable Supply Chain Network Design," Post-Print hal-02407741, HAL.
    11. Shabnam Rekabi & Ali Ghodratnama & Amir Azaron, 2022. "Designing pharmaceutical supply chain networks with perishable items considering congestion," Operational Research, Springer, vol. 22(4), pages 4159-4219, September.
    12. Huibing Cheng & Shanshui Zheng & Jianghong Feng, 2022. "A Fuzzy Multi-Criteria Method for Sustainable Ferry Operator Selection: A Case Study," Sustainability, MDPI, vol. 14(10), pages 1-22, May.
    13. Junming Liu & Weiwei Chen & Jingyuan Yang & Hui Xiong & Can Chen, 2022. "Iterative Prediction-and-Optimization for E-Logistics Distribution Network Design," INFORMS Journal on Computing, INFORMS, vol. 34(2), pages 769-789, March.
    14. Zhalechian, M. & Tavakkoli-Moghaddam, R. & Zahiri, B. & Mohammadi, M., 2016. "Sustainable design of a closed-loop location-routing-inventory supply chain network under mixed uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 182-214.
    15. Thomé, Antonio Márcio T. & Scavarda, Luiz Felipe & Pires, Sílvio R.I. & Ceryno, Paula & Klingebiel, Katja, 2014. "A multi-tier study on supply chain flexibility in the automotive industry," International Journal of Production Economics, Elsevier, vol. 158(C), pages 91-105.
    16. Olivares-Benitez, Elias & Ríos-Mercado, Roger Z. & González-Velarde, José Luis, 2013. "A metaheuristic algorithm to solve the selection of transportation channels in supply chain design," International Journal of Production Economics, Elsevier, vol. 145(1), pages 161-172.
    17. Chloe Kim Glaeser & Marshall Fisher & Xuanming Su, 2019. "Optimal Retail Location: Empirical Methodology and Application to Practice," Service Science, INFORMS, vol. 21(1), pages 86-102, January.
    18. Camilo Ortiz-Astorquiza & Ivan Contreras & Gilbert Laporte, 2019. "An Exact Algorithm for Multilevel Uncapacitated Facility Location," Transportation Science, INFORMS, vol. 53(4), pages 1085-1106, July.
    19. Martins, C.L. & Melo, M.T. & Pato, M.V., 2019. "Redesigning a food bank supply chain network in a triple bottom line context," International Journal of Production Economics, Elsevier, vol. 214(C), pages 234-247.
    20. Fahimnia, Behnam & Sarkis, Joseph & Eshragh, Ali, 2015. "A tradeoff model for green supply chain planning:A leanness-versus-greenness analysis," Omega, Elsevier, vol. 54(C), pages 173-190.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:324:y:2023:i:1:d:10.1007_s10479-022-04635-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.