The Multi-Echelon Supply Chain Network Design Subject To Multiple Reliable Strategies in Distribution Centers Level

Document Type : Research Paper

Authors

1 Department of Industrial Engineering, University of Kurdistan, Sanandaj, Iran.

2 Department of Industrial Engineering, University of Kurdistan, Sanandaj, Iran

Abstract

In the most of reliable location problems, the main objective is to minimize the total cost of establishment and shipping a single level network, taking into account a strategy to strengthen the reliability of the network. Therefore, in this paper more objective facts are considered; a model for designing a three-echelon supply chain network, taking into account reliable strategies across multiple distribution centers is presented. In this model, both reliable and unreliable distribution centers are considered. The strategy is in a way that if an unreliable distribution centers established in a candidate location, it should be fortified by the limited budget for unreliable distribution centers in critical situations or a reliable distribution center should be set as the backup to respond the customers in the case of failure. On the other hand, if a reliable distribution center were established in a candidate location, this center would be a backup itself. Considering the computational complexity of the problem and the presented model, a genetic algorithm is used. After setting the Taguchi design of experiments, the solutions in small, medium and large sizes were compared with results obtained from GAMS optimization software. The results show the percentage of algorithm gap, in all problems solved, is less than 3 percentage. This shows the effectiveness of the proposed algorithm.

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References

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Journal of Industrial Engineering Research in Production Systems
Volume 5, Issue 10
July 2017
Pages 53-67

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