Facility Location and Inventory Balancing in a Multi-period Multi-echelon Multi-objective Supply Chain: An MOEA Approach

A comprehensive and integrated study of any supply chain (SC) environment is a vital requirement that can create various advantages for the SC owners. This consideration causes productive managing of the SC through its whole wide components from upstream suppliers to downstream retailers and custome...

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Main Authors: Seyed Habib A. Rahmati, Abbas Ahmadi, Behrooz Karimi
Format: Article
Language:English
Published: Islamic Azad University, Qazvin Branch 2014-12-01
Series:Journal of Optimization in Industrial Engineering
Subjects:
Online Access:http://www.qjie.ir/article_166_6438c67491afd5cd17a2feef05b9635e.pdf
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author Seyed Habib A. Rahmati
Abbas Ahmadi
Behrooz Karimi
author_facet Seyed Habib A. Rahmati
Abbas Ahmadi
Behrooz Karimi
author_sort Seyed Habib A. Rahmati
collection DOAJ
description A comprehensive and integrated study of any supply chain (SC) environment is a vital requirement that can create various advantages for the SC owners. This consideration causes productive managing of the SC through its whole wide components from upstream suppliers to downstream retailers and customers.  On this issue, despite many valuable studies reported in the current literature, considerable gaps still prevail. These gaps include integration and insertion of basic concepts, such as queuing theory, facility location, inventory management, or even fuzzy theory, as well as other new concepts such as strategic planning, data mining, business intelligence, and information technology. This study seeks to address some of these gaps. To do so, it proposes an integrated four-echelon multi-period multi-objective SC model. To make the model closer to the real world problems, it is also composed of inventory and facility location planning, simultaneously. The proposed model has a mixed integer linear programming (MILP) structure. The objectives of the model are reducing cost and minimizing the non-fill rate of customer zones demand. The cost reduction part includes cost values of raw material shipping from suppliers to plants, plant location, inventory holding costs in plants, distribution cost from plants to warehouses or distribution centers (DCs), and shipping costs from DCs to customer zones. Finally, since the literature of SC lacks efficient Pareto-based multi-objective evolutionary algorithms (MOEAs), a new multi-objective version of the biogeography-based optimization algorithm (MOBBO) is introduced to the literature of the SC. The efficiency of the algorithm is proved through its comparison with an existing algorithm called multi-objective harmony search (MOHS).
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spelling doaj.art-40def1ab03e14cd7ae921fb9feb527312022-12-22T02:20:56ZengIslamic Azad University, Qazvin BranchJournal of Optimization in Industrial Engineering2251-99042423-39352014-12-017168399166Facility Location and Inventory Balancing in a Multi-period Multi-echelon Multi-objective Supply Chain: An MOEA ApproachSeyed Habib A. Rahmati0Abbas Ahmadi1Behrooz Karimi2PhD Candidate, Industrial Engineering Department, Amirkabir University of Technology, Tehran, IranAssistant Professor, Industrial Engineering Department, Amirkabir University of Technology, Tehran, IranAssociate Professor, Industrial Engineering Department, Amirkabir University of Technology, Tehran, IranA comprehensive and integrated study of any supply chain (SC) environment is a vital requirement that can create various advantages for the SC owners. This consideration causes productive managing of the SC through its whole wide components from upstream suppliers to downstream retailers and customers.  On this issue, despite many valuable studies reported in the current literature, considerable gaps still prevail. These gaps include integration and insertion of basic concepts, such as queuing theory, facility location, inventory management, or even fuzzy theory, as well as other new concepts such as strategic planning, data mining, business intelligence, and information technology. This study seeks to address some of these gaps. To do so, it proposes an integrated four-echelon multi-period multi-objective SC model. To make the model closer to the real world problems, it is also composed of inventory and facility location planning, simultaneously. The proposed model has a mixed integer linear programming (MILP) structure. The objectives of the model are reducing cost and minimizing the non-fill rate of customer zones demand. The cost reduction part includes cost values of raw material shipping from suppliers to plants, plant location, inventory holding costs in plants, distribution cost from plants to warehouses or distribution centers (DCs), and shipping costs from DCs to customer zones. Finally, since the literature of SC lacks efficient Pareto-based multi-objective evolutionary algorithms (MOEAs), a new multi-objective version of the biogeography-based optimization algorithm (MOBBO) is introduced to the literature of the SC. The efficiency of the algorithm is proved through its comparison with an existing algorithm called multi-objective harmony search (MOHS).http://www.qjie.ir/article_166_6438c67491afd5cd17a2feef05b9635e.pdfIntegrated supply chain managementProduction-distributionFacility location probleminventory balancingPlanning problemMOBBOMOHS
spellingShingle Seyed Habib A. Rahmati
Abbas Ahmadi
Behrooz Karimi
Facility Location and Inventory Balancing in a Multi-period Multi-echelon Multi-objective Supply Chain: An MOEA Approach
Journal of Optimization in Industrial Engineering
Integrated supply chain management
Production-distribution
Facility location problem
inventory balancing
Planning problem
MOBBO
MOHS
title Facility Location and Inventory Balancing in a Multi-period Multi-echelon Multi-objective Supply Chain: An MOEA Approach
title_full Facility Location and Inventory Balancing in a Multi-period Multi-echelon Multi-objective Supply Chain: An MOEA Approach
title_fullStr Facility Location and Inventory Balancing in a Multi-period Multi-echelon Multi-objective Supply Chain: An MOEA Approach
title_full_unstemmed Facility Location and Inventory Balancing in a Multi-period Multi-echelon Multi-objective Supply Chain: An MOEA Approach
title_short Facility Location and Inventory Balancing in a Multi-period Multi-echelon Multi-objective Supply Chain: An MOEA Approach
title_sort facility location and inventory balancing in a multi period multi echelon multi objective supply chain an moea approach
topic Integrated supply chain management
Production-distribution
Facility location problem
inventory balancing
Planning problem
MOBBO
MOHS
url http://www.qjie.ir/article_166_6438c67491afd5cd17a2feef05b9635e.pdf
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AT abbasahmadi facilitylocationandinventorybalancinginamultiperiodmultiechelonmultiobjectivesupplychainanmoeaapproach
AT behroozkarimi facilitylocationandinventorybalancinginamultiperiodmultiechelonmultiobjectivesupplychainanmoeaapproach