Volume 55, Number 5, September-October 2021
|Page(s)||3245 - 3279|
|Published online||03 November 2021|
Optimizing a bi-objective location-allocation-inventory problem in a dual-channel supply chain network with stochastic demands
School of Industrial and Systems Engineering, College of Engineering, University of Tehran, Tehran, Iran
2 School of Industrial Engineering, K. N. Toosi University of Technology (KNTU), Tehran, Iran
3 Department of Industrial Engineering, Karaj Branch, Islamic Azad Uinversity, Karaj, Iran
* Corresponding author: firstname.lastname@example.org
Accepted: 15 September 2021
Integrating strategic and tactical decisions to location-allocation and green inventory planning by considering e-commerce features will pave the way for supply chain managers. Therefore, this study provides an effective framework for making decisions related to different levels of the dual-channel supply chain. We provide a bi-objective location-allocation-inventory optimization model to design a dual-channel, multi-level supply chain network. The main objectives of this study are to minimize total cost and environmental impacts while tactical and strategic decisions are integrated. Demand uncertainty is also addressed using stochastic modeling, and inventory procedure is the periodic review (S, R). We consider many features in inventory modeling that play a very important role, such as lead time, shortage, inflation, and quality of raw materials, to adapt the model to the real conditions. Since a dual-channel supply chain is becoming more important for sustainable economic development and resource recovery, we combine online and traditional sales channels to design a network. We generate five test problems and solve them by using the augmented ε-constraint method. Also, the Grasshopper optimization algorithm was applied to solve the model in a reasonable time for a large size problem. In order to provide managerial insights and investigate the sensitivity of variables and problem objectives with respect to parameters, sensitivity analysis was performed.
Mathematics Subject Classification: 90B05 / 90B06 / 90B15
Key words: Inventory-location allocation problem / dual-channel supply chain / periodic review policy / stochastic demands / augmented ε-constraint / grasshopper optimization algorithm
© The authors. Published by EDP Sciences, ROADEF, SMAI 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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