A Location-Inventory-Pricing Supply Chain Network Design for Perishable Products Under Disruptions

Document Type : Research Paper

Authors

School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

Abstract

In this study, we discuss a location-inventory-pricing model considering the capacity constraints of the warehouses, disruption, and multiple perishable products. We extend a model that assumes that warehouses may face disruption, failed warehouses cannot cover any service, and their customers are assigned to other warehouses. To decrease the risk of disruption, we examine the efficiency of markup pricing strategy and support services. The objective function of this MINLP is to maximize the total profit of warehouses. To solve this model, Genetic Algorithm (GA) and Grasshopper Optimization Algorithm (GOA) are used. To evaluate the recommended model, several sensitivity analyses are proposed. Finally, the results of numerical experiments implicate the high-performance of GOA in dealing with problems and achieving better results. According to the results, backup services and markup pricing strategies are very effective in reducing the damage caused by the disruption.

Keywords

Main Subjects

References

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 [H1]City, Country: Publisher
Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 14, Issue 3
July 2021
Pages 487-507

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