A location-inventory supply chain network model using two heuristic algorithms for perishable products with fuzzy constraints

Abstract Supply chain network is very important to the development of industries. This paper integrates a location-inventory problem into a supply chain network and develops an optimization model for perishable products with fuzzy capacity and carbon emissions constraints. This model is formulated a mixed integer nonlinear programming model. In order to solve this model, hybrid genetic algorithm (HGA) and hybrid harmony search (HHS) are put forward to minimize the total costs. Instances under different situations are calculated using these two algorithms and Lindo (optimization solver). The impacts of some factors such as the number of facilities, intact rates, and demand on the total costs are investigated. The results of numerical experiments demonstrate that the proposed algorithms can effectively deal with problems under different conditions and these two algorithms have their own advantages. Specially, the quality of HHS’s solution is higher than that of HGA’s solution, whereas HGA is faster than HHS.

[1]  Zong Woo Geem,et al.  A New Heuristic Optimization Algorithm: Harmony Search , 2001, Simul..

[2]  Ata Allah Taleizadeh,et al.  Multi-product multi-chance-constraint stochastic inventory control problem with dynamic demand and partial back-ordering: A harmony search algorithm , 2012 .

[3]  Ping-Feng Pai,et al.  Capacitated Lot size problems with fuzzy capacity , 2003 .

[4]  R. Hammami,et al.  Carbon emissions in a multi-echelon production-inventory model with lead time constraints , 2015 .

[5]  T. Liao,et al.  A new age-based replenishment policy for supply chain inventory optimization of highly perishable products , 2013 .

[6]  Sarah S. Lam,et al.  Supply chain optimization under risk and uncertainty: A case study for high-end server manufacturing , 2016, Comput. Ind. Eng..

[7]  Jean-Philippe P. Richard,et al.  An integrated supply chain problem: a nested lagrangian relaxation approach , 2015, Ann. Oper. Res..

[8]  Yuehwern Yih,et al.  A column generation-based heuristic algorithm for an inventory routing problem with perishable goods , 2012, Optim. Lett..

[9]  Didier Dubois,et al.  Ranking fuzzy numbers in the setting of possibility theory , 1983, Inf. Sci..

[10]  John J. Grefenstette,et al.  Optimization of Control Parameters for Genetic Algorithms , 1986, IEEE Transactions on Systems, Man, and Cybernetics.

[11]  Terry P. Harrison.  Principles for the Strategic Design of Supply Chains , 2004 .

[12]  P. Miranda,et al.  Valid inequalities for Lagrangian relaxation in an inventory location problem with stochastic capacity , 2008 .

[13]  Yuping Wang,et al.  Inventory based two-objective job shop scheduling model and its hybrid genetic algorithm , 2013, Appl. Soft Comput..

[14]  Lawrence V. Snyder,et al.  The stochastic location model with risk pooling , 2007, Eur. J. Oper. Res..

[15]  Armin Jabbarzadeh,et al.  Incorporating location and inventory decisions into a supply chain design problem with uncertain demands and lead times , 2017 .

[16]  Vladimir Vovk,et al.  Weak aggregating algorithm for the distribution-free perishable inventory problem , 2010, Oper. Res. Lett..

[17]  Fatma Gzara,et al.  Logic-based Benders decomposition for an inventory-location problem with service constraints , 2015 .

[18]  Yanfeng Ouyang,et al.  Joint Inventory-Location Problem Under Risk of Probabilistic Facility Disruptions , 2011 .

[19]  Fatma Gzara,et al.  Linear location-inventory models for service parts logistics network design , 2014, Comput. Ind. Eng..

[20]  Lotfi A. Zadeh,et al.  Fuzzy Sets , 1996, Inf. Control..

[21]  Ahmad Makui,et al.  Applying queuing approach for a stochastic location-inventory problem with two different mean inventory considerations , 2016 .

[22]  Terry L. Friesz,et al.  Competition and disruption in a dynamic urban supply chain , 2011 .

[23]  Mark Ferguson,et al.  Information Sharing to Improve Retail Product Freshness of Perishables , 2006 .

[24]  M. Sakawa,et al.  Feasibility and Pareto optimality for multiobjective nonlinear programming problems with fuzzy parameters , 1991 .

[25]  Rene Haijema,et al.  Optimal ordering, issuance and disposal policies for inventory management of perishable products , 2014 .

[26]  Christopher S. Tang,et al.  Research advances in environmentally and socially sustainable operations , 2012, Eur. J. Oper. Res..

[27]  Ting Wu,et al.  A multi-period location model with transportation economies-of-scale and perishable inventory , 2015 .

[28]  Shi Mu,et al.  Issuing for perishable inventory management with a minimum inventory volume constraint , 2014, Comput. Ind. Eng..

[29]  Jinn-Tsair Teng,et al.  Two inventory systems with trapezoidal-type demand rate and time-dependent deterioration and backlogging , 2016, Expert Syst. Appl..

[30]  Jean-Philippe P. Richard,et al.  A Lagrangian relaxation approach to simultaneous strategic and tactical planning in supply chain design , 2013, Ann. Oper. Res..

[31]  U. Spiegel,et al.  Optimal inventory policy for a perishable item with demand function sensitive to price and time , 2013 .

[32]  Olga Battaïa,et al.  An improved Lagrangian relaxation-based heuristic for a joint location-inventory problem , 2015, Comput. Oper. Res..

[33]  Stephen D. Boyles,et al.  A three level location-inventory problem with correlated demand , 2014 .

[34]  Ata Allah Taleizadeh,et al.  Multiple-buyer multiple-vendor multi-product multi-constraint supply chain problem with stochastic demand and variable lead-time: A harmony search algorithm , 2011, Appl. Math. Comput..

[35]  Xue Liu,et al.  Improved two‐grade delayed particle swarm optimisation (TGDPSO) for inventory facility location for perishable food distribution centres in Beijing , 2007 .

[36]  Ioannis Mallidis,et al.  Operations Research for green logistics - An overview of aspects, issues, contributions and challenges , 2011, Eur. J. Oper. Res..

[37]  Zhuo Dai,et al.  Design of close-loop supply chain network under uncertainty using hybrid genetic algorithm: A fuzzy and chance-constrained programming model , 2015, Comput. Ind. Eng..

[38]  Ali Diabat,et al.  An integrated supply chain problem with environmental considerations , 2015 .

[39]  Ali H. Diabat.  A capacitated facility location and inventory management problem with single sourcing , 2016, Optim. Lett..

[40]  Oded Berman,et al.  A coordinated location-inventory model , 2012, Eur. J. Oper. Res..

[41]  F. Chan,et al.  Inventory management of perishable products: a time decay linked logistic approach , 2013 .

[42]  Gilbert Laporte,et al.  Optimal joint replenishment, delivery and inventory management policies for perishable products , 2014, Comput. Oper. Res..

[43]  Ali H. Diabat,et al.  An evolutionary programming approach for solving the capacitated facility location problem with risk pooling , 2009, Int. J. Appl. Decis. Sci..

[44]  Wing-Keung Wong,et al.  A hybrid intelligent model for medium-term sales forecasting in fashion retail supply chains using extreme learning machine and harmony search algorithm , 2010 .

[45]  Arun Kr. Purohit,et al.  Non-stationary stochastic inventory lot-sizing with emission and service level constraints in a carbon cap-and-trade system , 2016 .

[46]  D. Konur,et al.  Integrated inventory control and transportation decisions under carbon emissions regulations: LTL vs. TL carriers , 2014 .

[47]  B. Sivakumar,et al.  Optimal control of production time of perishable inventory system with finite source of customers , 2015 .

[48]  Alper Atamtürk,et al.  A Conic Integer Programming Approach to Stochastic Joint Location-Inventory Problems , 2012, Oper. Res..

[49]  Tung Le,et al.  A hybrid tabu search based heuristic for the periodic distribution inventory problem with perishable goods , 2016, Ann. Oper. Res..

[50]  Fredrik Olsson,et al.  Inventory problems with perishable items: Fixed lifetimes and backlogging , 2010, Eur. J. Oper. Res..

[51]  Amir Ahmadi-Javid,et al.  A location-inventory-pricing model in a supply chain distribution network with price-sensitive demands and inventory-capacity constraints , 2015 .

[52]  B. Sivakumar,et al.  Optimal control of service parameter for a perishable inventory system maintained at service facility with impatient customers , 2015, Ann. Oper. Res..

[53]  Abbas Seifi,et al.  Considering lost sale in inventory routing problems for perishable goods , 2015, Comput. Ind. Eng..

[54]  Iyad Rahwan,et al.  A genetic algorithm approach for location-inventory-routing problem with perishable products , 2017 .

[55]  Said Salhi,et al.  An Efficient Hybrid Genetic Algorithm for the MultiProduct Multi Period Inventory Routing Problem , 2011 .

[56]  Kripa Shanker,et al.  Two-echelon supply chain inventory model with controllable lead time and service level constraint , 2009, Comput. Ind. Eng..

[57]  Werner Jammernegg,et al.  The single period inventory model under dual sourcing and product carbon footprint constraint , 2014 .

[58]  Halit Üster,et al.  Tabu Search and Benders Decomposition Approaches for a Capacitated Closed-Loop Supply Chain Network Design Problem , 2009, Transp. Sci..

[59]  Loo Hay Lee,et al.  Multi-source facility location-allocation and inventory problem , 2010, Eur. J. Oper. Res..

[60]  S. K. Goyal,et al.  Recent trends in modeling of deteriorating inventory , 2001, Eur. J. Oper. Res..

[61]  David Perry,et al.  Inventory systems for goods with censored random lifetimes , 2000, Oper. Res. Lett..

[62]  Ali H. Diabat,et al.  A location-inventory supply chain problem: Reformulation and piecewise linearization , 2015, Comput. Ind. Eng..