Multi-Objective Mathematical Model for Locating Flow Optimization Facilities in Supply Chain of Deteriorating Products

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Hamid Reza Mohammadi, Reza Ehtesham Rasi, Ali Mohtashami

Abstract

The main purpose of this paper is to provide multi objective mathematical model which will select the best facilities location for supply chain of deteriorating products. In the supply chain network (SCN) of this paper, the manufacturer produces a new product and delivers it to a distant market, and then the distributor buys the product and sells it to the end consumers. Since the product is deteriorating, the both quantity and quality might be diminished during the transportation interaction. This study presents a new model of the location-routing problem (LRP) of facilities under uncertainty in SCN for deteriorating products through taking environmental considerations, cost, and delivery time and customer satisfaction into account, to simultaneously optimize total costs, delivery time, emissions across the entire network and customer satisfaction. The research problem is formulated in a mixed-integer nonlinear multi-objective programming (MINLP). In order to solve the model, the combination of the two red deer algorithm (RDA) and annealing simulation (AS) was proposed. For validation, the results of the proposed algorithm in different size examples are compared with the results of the exact method solution by MATLAB software. The results of the algorithm performance are investigated based on standard indices in Kaleh dairy product. The computational results show the efficiency of the algorithm for a wide range of problems with different sizes. The location decisions are interdependent, and the process of determining the optimal values of these variables interact together, which can lead to an optimal system with the least possible costs.

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