IDEAS home Printed from https://ideas.repec.org/a/wly/transj/v61y2022i1p60-102.html

Sustainable Pricing‐Production‐Workforce‐Routing Problem for Perishable Products by Considering Demand Uncertainty; A Case Study from the Dairy Industry

Author

Listed:
  • Ali Majidi
  • Pedram Farghadani‐Chaharsooghi
  • S. Mohammad J. Mirzapour Al‐e‐Hashem

Abstract

The production routing problem seeks to simultaneously optimize production, routing, and inventory decisions for the plant and the suppliers. In this article an integrated multi‐objective sustainable pricing‐production‐workforce‐routing problem is presented for perishable products. Total profit, workforce planning, and vehicle fuel consumption are considered as objective functions due to the importance of operational performance, social, and environmental concerns. The application of the proposed approach is investigated using real case data from a dairy product supply chain. Furthermore, a new solution approach, called Fuzzy Domination Self‐Learning Non‐Dominated Sorting Algorithm (FDSL‐NSGA‐II), is developed to solve the problem. The results show that the Pareto solutions of FDSL‐NSGA‐II outperform those of the classic NSGA‐II. Moreover, the findings show that the proposed model can create a surpassing tradeoff between the various aspects of a supply chain, including production, distribution, and workforce planning. In addition, it concurrently optimizes the selling price and protects the environment from the negative impacts of greenhouse gas emissions (GHGs). A comprehensive analysis of the results reveals several managerial insights for decision makers in the logistics industry.

Suggested Citation

  • Ali Majidi & Pedram Farghadani‐Chaharsooghi & S. Mohammad J. Mirzapour Al‐e‐Hashem, 2022. "Sustainable Pricing‐Production‐Workforce‐Routing Problem for Perishable Products by Considering Demand Uncertainty; A Case Study from the Dairy Industry," Transportation Journal, John Wiley & Sons, vol. 61(1), pages 60-102, January.
    • Handle: RePEc:wly:transj:v:61:y:2022:i:1:p:60-102
    DOI: 10.5325/transportationj.61.1.0060
    as

    Download full text from publisher

    File URL: https://doi.org/10.5325/transportationj.61.1.0060
    Download Restriction: no
    File URL: https://libkey.io/10.5325/transportationj.61.1.0060?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
    ---><---

    References listed on IDEAS

    as
    1. Ali Diabat & Tarek Abdallah & Tung Le, 2016. "A hybrid tabu search based heuristic for the periodic distribution inventory problem with perishable goods," Annals of Operations Research, Springer, vol. 242(2), pages 373-398, July.
    2. Timajchi, Ali & Mirzapour Al-e-Hashem, Seyed M.J. & Rekik, Yacine, 2019. "Inventory routing problem for hazardous and deteriorating items in the presence of accident risk with transshipment option," International Journal of Production Economics, Elsevier, vol. 209(C), pages 302-315.
    3. Palak, Gökçe & Ekşioğlu, Sandra Duni & Geunes, Joseph, 2014. "Analyzing the impacts of carbon regulatory mechanisms on supplier and mode selection decisions: An application to a biofuel supply chain," International Journal of Production Economics, Elsevier, vol. 154(C), pages 198-216.
    4. Jean J. Gabszewicz & Xavier Y. Wauthy, 2003. "The option of joint purchase in vertically differentiated markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(4), pages 817-829, November.
    5. Yevgeniy Goryakin & Bayard Roberts & Martin McKee, 2015. "Price elasticities of alcohol demand: evidence from Russia," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(2), pages 185-199, March.
    6. repec:bla:jindec:v:48:y:2000:i:4:p:413-32 is not listed on IDEAS
    7. Metin Türkay & Öztürk Saraçoğlu & Mehmet Can Arslan, 2016. "Sustainability in Supply Chain Management: Aggregate Planning from Sustainability Perspective," PLOS ONE, Public Library of Science, vol. 11(1), pages 1-18, January.
    8. De Bruecker, Philippe & Van den Bergh, Jorne & Beliën, Jeroen & Demeulemeester, Erik, 2015. "Workforce planning incorporating skills: State of the art," European Journal of Operational Research, Elsevier, vol. 243(1), pages 1-16.
    9. Yoshinori Suzuki & Qazi Shaheen Kabir, 2015. "Green Vehicle Routing for Small Motor Carriers," Transportation Journal, John Wiley & Sons, vol. 54(2), pages 186-212, April.
    10. Borna Rezaie & Farhad Esmaeili & Hamed Fazlollahtabar, 2012. "Developing the concept of pricing in a deterministic homogenous vehicle routing problem with comprehensive sensitivity analysis," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 12(1), pages 20-34.
    11. Qiu, Yuzhuo & Qiao, Jun & Pardalos, Panos M., 2017. "A branch-and-price algorithm for production routing problems with carbon cap-and-trade," Omega, Elsevier, vol. 68(C), pages 49-61.
    12. Ali Timajchi & Seyed Mohammad Javad Mirzapour Al-E-Hashem & Yacine Rekik, 2019. "Inventory routing problem for hazardous and deteriorating items in the presence of accident risk with transshipment option," Post-Print hal-02312116, HAL.
    13. Joseph Farrell & Michael L. Katz, 2000. "Innovation, Rent Extraction, and Integration in Systems Markets," Journal of Industrial Economics, Wiley Blackwell, vol. 48(4), pages 413-432, December.
    14. Asghari, Mohammad & Mirzapour Al-e-hashem, S. Mohammad J., 2021. "Green vehicle routing problem: A state-of-the-art review," International Journal of Production Economics, Elsevier, vol. 231(C).
    15. Boudia, M. & Prins, C., 2009. "A memetic algorithm with dynamic population management for an integrated production-distribution problem," European Journal of Operational Research, Elsevier, vol. 195(3), pages 703-715, June.
    16. Iman Dayarian & Guy Desaulniers, 2019. "A Branch-Price-and-Cut Algorithm for a Production-Routing Problem with Short-Life-Span Products," Transportation Science, INFORMS, vol. 53(3), pages 829-849, May.
    17. Masoud Chitsaz & Jean-François Cordeau & Raf Jans, 2019. "A Unified Decomposition Matheuristic for Assembly, Production, and Inventory Routing," INFORMS Journal on Computing, INFORMS, vol. 31(1), pages 134-152, February.
    18. Chandra, Pankaj & Fisher, Marshall L., 1994. "Coordination of production and distribution planning," European Journal of Operational Research, Elsevier, vol. 72(3), pages 503-517, February.
    19. Mohammad Asghari & Seyed Mohammad Javad Mirzapour Al-E-Hashem, 2021. "Green vehicle routing problem: A state-of-the-art review," Post-Print hal-03182944, HAL.
    20. Lisa M. Ellram & Monique L. Ueltschy Murfield, 2017. "Environmental Sustainability in Freight Transportation: A Systematic Literature Review and Agenda for Future Research," Transportation Journal, John Wiley & Sons, vol. 56(3), pages 263-298, July.
    21. Amulya Gurtu, 2019. "A Pioneering Approach to Reducing Fuel Cost and Carbon Emissions from Transportation," Transportation Journal, John Wiley & Sons, vol. 58(4), pages 309-322, October.
    22. Avci, Mustafa & Yildiz, Seyda Topaloglu, 2019. "A matheuristic solution approach for the production routing problem with visit spacing policy," European Journal of Operational Research, Elsevier, vol. 279(2), pages 572-588.
    23. Fowler, John W. & Wirojanagud, Pornsarun & Gel, Esma S., 2008. "Heuristics for workforce planning with worker differences," European Journal of Operational Research, Elsevier, vol. 190(3), pages 724-740, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhen Wang & Jiazhen Huo & Jasmine Siu Lee Lam, 2025. "The vehicle routing programming of municipal solid waste collection under cognitive uncertainty," Transportation Journal, John Wiley & Sons, vol. 64(1), January.
    2. David Swanson & Yao “Henry” Jin, 2023. "The Noble Quest: Navigating Toward Sustainable Transportation," Transportation Journal, John Wiley & Sons, vol. 62(3), pages 249-268, June.
    3. Mohammad Amin Edalatpour & Seyed Mohammad Javad Mirzapour Al-e-Hashem & Amir Mohammad Fathollahi-Fard, 2024. "Combination of pricing and inventory policies for deteriorating products with sustainability considerations," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(3), pages 6809-6849, March.
    4. David Swanson & Yao “Henry” Jin & Bryan Ashenbaum, 2022. "How Much Did That Cost? A Call for Improved Transportation Cost Transparency," Transportation Journal, John Wiley & Sons, vol. 61(4), pages 315-330, September.

    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. Habibi, Muhammad Khakim & Hammami, Ramzi & Battaia, Olga & Dolgui, Alexandre, 2024. "Simultaneous Pickup-and-Delivery Production-Routing Problem in closed-loop supply chain with remanufacturing and disassembly consideration," International Journal of Production Economics, Elsevier, vol. 273(C).
    2. Zakaria Chekoubi & Wajdi Trabelsi & Nathalie Sauer & Ilias Majdouline, 2022. "The Integrated Production-Inventory-Routing Problem with Reverse Logistics and Remanufacturing: A Two-Phase Decomposition Heuristic," Sustainability, MDPI, vol. 14(20), pages 1-30, October.
    3. Manousakis, Eleftherios G. & Kasapidis, Grigoris A. & Kiranoudis, Chris T. & Zachariadis, Emmanouil E., 2022. "An infeasible space exploring matheuristic for the Production Routing Problem," European Journal of Operational Research, Elsevier, vol. 298(2), pages 478-495.
    4. Y. Sadati-Keneti & M. V. Sebt & R. Tavakkoli-Moghaddam & M. Rahbari & M. J. Jafari, 2026. "Risk assessment in the supply chain of hazardous materials with carbon cap and trade mechanism: multi-objective red deer algorithm," Annals of Operations Research, Springer, vol. 356(2), pages 1149-1189, January.
    5. Xuanjing Fang & Yanan Du & Yuzhuo Qiu, 2017. "Reducing Carbon Emissions in a Closed-Loop Production Routing Problem with Simultaneous Pickups and Deliveries under Carbon Cap-and-Trade," Sustainability, MDPI, vol. 9(12), pages 1-15, November.
    6. Alvarez, Aldair & Miranda, Pedro & Rohmer, S.U.K., 2022. "Production routing for perishable products," Omega, Elsevier, vol. 111(C).
    7. Diabat, Ali & Bianchessi, Nicola & Archetti, Claudia, 2024. "On the zero-inventory-ordering policy in the inventory routing problem," European Journal of Operational Research, Elsevier, vol. 312(3), pages 1024-1038.
    8. Cleder Marcos Schenekemberg & Thiago André Guimarães & Antonio Augusto Chaves & Leandro C. Coelho, 2024. "A Three-Front Parallel Branch-and-Cut Algorithm for Production and Inventory Routing Problems," Transportation Science, INFORMS, vol. 58(4), pages 687-707, July.
    9. Neves-Moreira, Fábio & Almada-Lobo, Bernardo & Guimarães, Luís & Amorim, Pedro, 2022. "The multi-product inventory-routing problem with pickups and deliveries: Mitigating fluctuating demand via rolling horizon heuristics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    10. Tan, Zhijia & Wang, Ming & Zheng, Zhengfei & Yang, Hai, 2025. "Routing and adopting of green technology in road freight transportation under the carbon cap-and-trade scheme," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 203(C).
    11. Neves-Moreira, Fábio & Almada-Lobo, Bernardo & Cordeau, Jean-François & Guimarães, Luís & Jans, Raf, 2019. "Solving a large multi-product production-routing problem with delivery time windows," Omega, Elsevier, vol. 86(C), pages 154-172.
    12. Qiu, Yuzhuo & Qiao, Jun & Pardalos, Panos M., 2019. "Optimal production, replenishment, delivery, routing and inventory management policies for products with perishable inventory," Omega, Elsevier, vol. 82(C), pages 193-204.
    13. Qiu, Yuzhuo & Zhou, Dan & Du, Yanan & Liu, Jie & Pardalos, Panos M. & Qiao, Jun, 2021. "The two-echelon production routing problem with cross-docking satellites," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    14. Shuang, Yan & Diabat, Ali & Liao, Yi, 2019. "A stochastic reverse logistics production routing model with emissions control policy selection," International Journal of Production Economics, Elsevier, vol. 213(C), pages 201-216.
    15. Avci, Mustafa & Yildiz, Seyda Topaloglu, 2019. "A matheuristic solution approach for the production routing problem with visit spacing policy," European Journal of Operational Research, Elsevier, vol. 279(2), pages 572-588.
    16. Tao Wu, 2024. "Exact Method for Production Hub Location," INFORMS Journal on Computing, INFORMS, vol. 36(5), pages 1287-1315, September.
    17. Schenekemberg, Cleder M. & Scarpin, Cassius T. & Pécora, José E. & Guimarães, Thiago A. & Coelho, Leandro C., 2021. "The two-echelon production-routing problem," European Journal of Operational Research, Elsevier, vol. 288(2), pages 436-449.
    18. Li, Yantong & Chu, Feng & Chu, Chengbin & Zhu, Zhanguo, 2019. "An efficient three-level heuristic for the large-scaled multi-product production routing problem with outsourcing," European Journal of Operational Research, Elsevier, vol. 272(3), pages 914-927.
    19. Qiu, Yuzhuo & Ni, Ming & Wang, Liang & Li, Qinqin & Fang, Xuanjing & Pardalos, Panos M., 2018. "Production routing problems with reverse logistics and remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 87-100.
    20. Yiqiang Zhang & Hussam Alshraideh & Ali Diabat, 2018. "A stochastic reverse logistics production routing model with environmental considerations," Annals of Operations Research, Springer, vol. 271(2), pages 1023-1044, December.

    More about this item

    Statistics

    Access and download statistics

    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:wly:transj:v:61:y:2022:i:1:p:60-102. 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: Wiley Content Delivery (email available below). General contact details of provider: .

    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.