A two-stage stochastic programming model for a perishable products supply chain network design considering resiliency and responsiveness

Document Type : Research Paper

Authors

Department of Industrial Engineering, Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran

Abstract

The present scenario of supply chain management is full of uncertainty due to the intrinsic complexity of operating environments. A perishable products supply chain is not an exception and is often vulnerable to disruptive incidents throughout all stages from upstream to downstream. To deal with such a challenge, a resilient structure of the supply chain with the capability to recover from or react to disruptions is approached in this study. To secure the supply chain operations, we investigate a set of proactive strategies, including signing contracts with backup suppliers, reserving extra capacity in production facilities, lateral transshipment, and keeping inventory. Using a two-stage stochastic programming model, this study examines the extent to which supply chain responsiveness and resilience are supportive. The proposed model is validated through a numerical example, and managerial insights are derived. The computational results are based on three analyses: (1) extracting the relationship between the cost function and the acceptable service levels, (2) examining the effectiveness of different strategies in managing disruptions, (3) and evaluating the accuracy of the two-stage stochastic programming approach in comparison with other approaches.

Keywords

Main Subjects

References

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Journal of Industrial and Systems Engineering
Volume 13, Issue 3
July 2021
Pages 153-171

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History

  • Receive Date: 09 December 2020
  • Revise Date: 24 January 2021
  • Accept Date: 03 February 2021

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