Multi-Objective Inventory-Location-Routing Problem, with Multiple Suppliers and Perishable Products using Scenario-Based Approach

Abstract

In this paper, a three-echelon supply chain, consisting a number of suppliers, distribution centers (DCs), and retailers (customers) is modeled as an integrated bi-objective inventory- location – routing problem (ILRP) which, perishable products are delivered to the customers through DCs in a limited time horizon, consisting of several time periods. The retailers’ demand is stochastic and is applied on the model by the concept of discrete scenario. The transportation fleet is heterogeneous, and distribution centers use a timetable, which will prevent interference of the vehicles operation and allocation of a vehicle to more than one distribution center in each time period. Three methods of calculating the distance to the ideal point are used in to solve and analysis the model. At the end, besides concluding the discussion, recommendations are made for future studies.

Keywords

• integrated inventory-location-routing problem
• perishable products
• scenario
• multi-objective optimization