Issue |
RAIRO-Oper. Res.
Volume 57, Number 5, September-October 2023
|
|
---|---|---|
Page(s) | 2537 - 2559 | |
DOI | https://doi.org/10.1051/ro/2023122 | |
Published online | 10 October 2023 |
A multi-stage stochastic programming approach for an inventory–routing problem considering life cycle
Department of Industrial engineering, Iran University of Science & Technology, Tehran, Iran
* Corresponding author: amakui@iust.ac.ir
Received:
25
November
2022
Accepted:
12
August
2023
Food waste and proper methods to deal with it are one of the main challenges of supply chain network management. The majority of studies on how to use mathematical models in the supply chain have focused on goods that are at their peak of freshness as soon as they are produced and deteriorate over time. While some products experience an increase in value at the start of their life cycle, this value eventually reaches its maximum level, and after this point, these products experience a decline in value before being eliminated from the consumption cycle. The objective of this study is to develop a comprehensive inventory–routing model suitable for supply chain networks where products exhibit an increase and decrease in value over time. By considering the randomness and dynamic uncertainty of market demands and the fact that each period has effects on the next period, The proposed model employs a multi-stage stochastic programming (MSSP) approach. By doing so, the model ensures a balanced flow between different components of the network while considering nondeterministic demand under various scenarios that are shown in a tree of scenarios. The utilization of MSSP leads to more reliable solutions compared to deterministic models, making it possible for chain stores to make well-informed decisions in their inventory management and distribution strategies. Ultimately, this approach results in cost savings for chain stores handling such products. This research makes a significant contribution to the existing literature by demonstrating the effectiveness of the proposed model on actual data and highlighting the benefits of using stochastic programming in supply chain optimization.
Mathematics Subject Classification: 90B06 / 90C15
Key words: Inventory-routing problem / perishability / multi-stage stochastic programming / supply chain network design / product life cycle
© The authors. Published by EDP Sciences, ROADEF, SMAI 2023
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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