Effects of integration on the cost reduction in distribution network design for perishable products

Perishable products, which include medical and pharmaceutical items as well as food products, are quite common in commerce and industries. Developing efficient network designs for storage and distribution of perishable products plays a prominent role in the cost and quality of these products. This p...

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Main Authors: Firoozi, Zahra, Ismail, Napsiah, Ariafar, Shahram, Tang, Sai Hong, Mohd Ariffin, Mohd Khairol Anuar, Mamariani, A.
Format: Article
Language:English
Published: Hindawi Publishing Corporation 2014
Online Access:http://psasir.upm.edu.my/id/eprint/37363/1/COST.pdf
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author Firoozi, Zahra
Ismail, Napsiah
Ariafar, Shahram
Tang, Sai Hong
Mohd Ariffin, Mohd Khairol Anuar
Mamariani, A.
author_facet Firoozi, Zahra
Ismail, Napsiah
Ariafar, Shahram
Tang, Sai Hong
Mohd Ariffin, Mohd Khairol Anuar
Mamariani, A.
author_sort Firoozi, Zahra
collection UPM
description Perishable products, which include medical and pharmaceutical items as well as food products, are quite common in commerce and industries. Developing efficient network designs for storage and distribution of perishable products plays a prominent role in the cost and quality of these products. This paper aims to investigate and analyze the impact of applying an integrated approach for network design of perishable products. For this purpose, the problem has been formulated as a mixed integer nonlinear mathematical model that integrates inventory control and facility location decisions. To solve the integrated model, a memetic algorithm (MA) is developed in this study. For verification of the proposed algorithm, its results are compared with the results of an adapted Lagrangian relaxation heuristic algorithm from the literature. Moreover, sensitivity analysis of the main parameters of the model is conducted to compare the results of the integrated approach with a decoupled method. The results show that as the products become more perishable, application of an integrated method becomes more reasonable in comparison with the decoupled one.
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spelling upm.eprints-373632021-02-28T17:50:54Z http://psasir.upm.edu.my/id/eprint/37363/ Effects of integration on the cost reduction in distribution network design for perishable products Firoozi, Zahra Ismail, Napsiah Ariafar, Shahram Tang, Sai Hong Mohd Ariffin, Mohd Khairol Anuar Mamariani, A. Perishable products, which include medical and pharmaceutical items as well as food products, are quite common in commerce and industries. Developing efficient network designs for storage and distribution of perishable products plays a prominent role in the cost and quality of these products. This paper aims to investigate and analyze the impact of applying an integrated approach for network design of perishable products. For this purpose, the problem has been formulated as a mixed integer nonlinear mathematical model that integrates inventory control and facility location decisions. To solve the integrated model, a memetic algorithm (MA) is developed in this study. For verification of the proposed algorithm, its results are compared with the results of an adapted Lagrangian relaxation heuristic algorithm from the literature. Moreover, sensitivity analysis of the main parameters of the model is conducted to compare the results of the integrated approach with a decoupled method. The results show that as the products become more perishable, application of an integrated method becomes more reasonable in comparison with the decoupled one. Hindawi Publishing Corporation 2014 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/37363/1/COST.pdf Firoozi, Zahra and Ismail, Napsiah and Ariafar, Shahram and Tang, Sai Hong and Mohd Ariffin, Mohd Khairol Anuar and Mamariani, A. (2014) Effects of integration on the cost reduction in distribution network design for perishable products. Mathematical Problems in Engineering, 2014. art. no. 739741. pp. 1-10. ISSN 1024-123X; ESSN: 1563-5147 https://www.hindawi.com/journals/mpe/2014/739741/ 10.1155/2014/739741
spellingShingle Firoozi, Zahra
Ismail, Napsiah
Ariafar, Shahram
Tang, Sai Hong
Mohd Ariffin, Mohd Khairol Anuar
Mamariani, A.
Effects of integration on the cost reduction in distribution network design for perishable products
title Effects of integration on the cost reduction in distribution network design for perishable products
title_full Effects of integration on the cost reduction in distribution network design for perishable products
title_fullStr Effects of integration on the cost reduction in distribution network design for perishable products
title_full_unstemmed Effects of integration on the cost reduction in distribution network design for perishable products
title_short Effects of integration on the cost reduction in distribution network design for perishable products
title_sort effects of integration on the cost reduction in distribution network design for perishable products
url http://psasir.upm.edu.my/id/eprint/37363/1/COST.pdf
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