An integrated model for designing a distribution network of products under facility and transportation link disruptions

Document Type: Research Paper

Authors

1 School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

2 Dept. of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran

3 Iran university of science and technology

Abstract

Due to occurrence of unexpected disruptions,a resilient supply chain design is important. In this paper, a bi-objective model is proposed for designing a resilient supply chain including suppliers, distribution centers (DCs), and retailers under disruption risks.The first objective function minimizes total costs. The second objective function maximizes satisfied demands. We use the augmented e-constraint method to solve the bi-objective problem. In the proposed model, the possibility of partial disruptions of DCs as well as complete disruptions of connection links between distribution centers and retailers is considered. In order to reduce risk, resilience strategies including, using multiple sourcing, direct shipment of products from suppliers to retailers, and lateral transshipment between distribution centers are used.We utilize a two-stage stochastic programming method to deal with disruption risks. The decisions of the first stage of the method consist selection of suppliers and location of DCs while the decisions of the second stage include integrated programs for supply and distribution of products. The validity of the proposed model is then evaluated by introducing a numerical example and performing different sensitivity analyses on it.

Keywords

Main Subjects


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