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Article
Publication date: 18 October 2021

Farshid Jahanshahee Nezhad, Mohammadreza Taghizadeh-Yazdi, Jalil Heidary Dahooie, Ali Zamani Babgohari and Seyed Mojtaba Sajadi

Environmental awareness is increasing among people in developing countries. In this regard, companies should consider ecological goals in addition to financial goals. Since the…

Abstract

Purpose

Environmental awareness is increasing among people in developing countries. In this regard, companies should consider ecological goals in addition to financial goals. Since the food industry is recognised as one of the largest emitters of CO2, profit and ecological objectives are optimised in radio-frequency identification (RFID) based closed-loop supply chain in the food industry in this paper.

Design/methodology/approach

Based on the literature, companies with a green entrepreneurial orientation (GEO) can turn ecological problems into opportunities using their proactiveness. In this regard, a new mixed-integer non-linear mathematical model is presented for optimising a new multi-product RFID-based closed-loop supply chain with a GEO in the food industry. The case study in this paper is Ofogh-e Kourosh company which is located in Iran. The GAMS software is used to code this model.

Findings

The optimum number of new products and materials flow was found among the closed-loop supply chain entities. Some factors as price, quality and warranty of products were considered, and the number of reopening of facilities if needed was set. The optimum node for RFID installation was found.

Originality/value

The paper presents a multi-objective mathematical model for optimising a multi-product RFID-based closed-loop supply chain with a GEO in the food industry. In addition, this paper gives insights into how can model this type of supply chain considering ecological and financial attributes.

Details

British Food Journal, vol. 124 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 17 July 2020

Arya Sohrabi, Mir Saman Pishvaee, Ashkan Hafezalkotob and Shahrooz Bamdad

Prepaid mobile Internet is one of the most profitable services that are composed of multiple attributes. The overall utility of Internet service can be broken down into the sum of…

Abstract

Purpose

Prepaid mobile Internet is one of the most profitable services that are composed of multiple attributes. The overall utility of Internet service can be broken down into the sum of the utility of individual attribute levels. Based on the multi-attribute theory, rational consumers choose the service that yields the highest utility from a number of possible alternatives. Determining the optimal attribute levels that satisfy consumers' preferences and maximize the total revenue of the firm is a challenging multi-attribute decision problem for any mobile operator. When designing mobile Internet services, adopting a robust composition of services against different realizations of competitors' strategies can bring advantages for network operators. The purpose of this study is to determine the optimal attribute levels of prepaid mobile Internet packages with the aim of maximizing the total revenue of the firm by considering the paradigms of multi-attribute utility theory about consumer choices and the issue of uncertainty in counterpart services offered by the competitors.

Design/methodology/approach

This paper formulates the problem of multi-attribute pricing and design of mobile Internet plans in a competitive environment by developing deterministic and robust scenario-based mathematical models and considering the paradigms of multi-attribute utility theory about consumer choices. The proposed robust scenario-based models are based on three different paradigms, including maximizing expected revenue, minimizing the negative deviation from expected revenue and minimizing the maximum regret. A comprehensive numerical analysis is conducted to evaluate and compare the efficiency of the proposed models.

Findings

The evaluations reveal that deploying recourse policy can result in higher revenue for the firm when facing uncertainty. By doing sensitivity analysis, this paper shows that consumer preferences for brand attribute and consumers' purchase frequency can influence the revenue of network operators.

Originality/value

This paper develops a novel deterministic multi-attribute product line design (PLD) model to address the problem of determining the price and composition of prepaid mobile Internet plans. Furthermore, the issue of uncertainty in counterpart services offered by the competitors is studied for the first time in the PLD literature.

Details

Journal of Enterprise Information Management, vol. 33 no. 5
Type: Research Article
ISSN: 1741-0398

Keywords

Book part
Publication date: 6 November 2013

Bartosz Sawik

This chapter presents the survey of selected linear and mixed integer programming multi-objective portfolio optimization. The definitions of selected percentile risk measures are…

Abstract

This chapter presents the survey of selected linear and mixed integer programming multi-objective portfolio optimization. The definitions of selected percentile risk measures are presented. Some contrasts and similarities of the different types of portfolio formulations are drawn out. The survey of multi-criteria methods devoted to portfolio optimization such as weighting approach, lexicographic approach, and reference point method is also presented. This survey presents the nature of the multi-objective portfolio problems focuses on a compromise between the construction of objectives, constraints, and decision variables in a portfolio and the problem complexity of the implemented mathematical models. There is always a trade-off between computational time and the size of an input data, as well as the type of mathematical programming formulation with linear and/or mixed integer variables.

Article
Publication date: 12 June 2023

Sarasadat Alavi, Ali Bozorgi-Amiri and Seyed Mohammad Seyedhosseini

Fortification-interdiction models provide system designers with a broader perspective to identify and protect vital components. Based on this concept, the authors examine how…

Abstract

Purpose

Fortification-interdiction models provide system designers with a broader perspective to identify and protect vital components. Based on this concept, the authors examine how disruptions impact critical supply systems and propose the most effective protection strategies based on three levels of decision-makers. This paper aims to investigate location and fortification decisions at the first level. Moreover, a redesign problem is presented in the third level to locate backup facilities and reallocate undisrupted facilities following the realization of the disruptive agent decisions at the second level.

Design/methodology/approach

To address this problem, the authors develop a tri-level planner-attacker-defender optimization model. The model minimizes investment and demand satisfaction costs and alleviates maximal post-disruption costs. While decisions are decentralized at different levels, the authors develop an integrated solution algorithm to solve the model using the column-and-constraint generation (CCG) method.

Findings

The model and the solution approach are tested on a real supply system consisting of several hospitals and demand areas in a region in Iran. Results indicate that incorporating redesign decisions at the third level reduces maximum disruption costs.

Originality/value

The paper makes the following contributions: presenting a novel tri-level optimization model to formulate facility location and interdiction problems simultaneously, considering corrective measures at the third level to reconfigure the system after interdiction, creating a resilient supply system that can fulfill all demands after disruptions, employing a nested CCG method to solve the model.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 13 July 2023

S.M. Taghavi, V. Ghezavati, H. Mohammadi Bidhandi and S.M.J. Mirzapour Al-e-Hashem

This paper proposes a two-level supply chain including suppliers and manufacturers. The purpose of this paper is to design a resilient fuzzy risk-averse supply portfolio selection…

Abstract

Purpose

This paper proposes a two-level supply chain including suppliers and manufacturers. The purpose of this paper is to design a resilient fuzzy risk-averse supply portfolio selection approach with lead-time sensitive manufacturers under partial and complete supply facility disruption in addition to the operational risk of imprecise demand to minimize the mean-risk costs. This problem is analyzed for a risk-averse decision maker, and the authors use the conditional value-at-risk (CVaR) as a risk measure, which has particular applications in financial engineering.

Design/methodology/approach

The methodology of the current research includes two phases of conceptual model and mathematical model. In the conceptual model phase, a new supply portfolio selection problem is presented under disruption and operational risks for lead-time sensitive manufacturers and considers resilience strategies for risk-averse decision makers. In the mathematical model phase, the stages of risk-averse two-stage fuzzy-stochastic programming model are formulated according to the above conceptual model, which minimizes the mean-CVaR costs.

Findings

In this paper, several computational experiments were conducted with sensitivity analysis by GAMS (General algebraic modeling system) software to determine the efficiency and significance of the developed model. Results show that the sensitivity of manufacturers to the lead time as well as the occurrence of disruption and operational risks, significantly affect the structure of the supply portfolio selection; hence, manufacturers should be taken into account in the design of this problem.

Originality/value

The study proposes a new two-stage fuzzy-stochastic scenario-based mathematical programming model for the resilient supply portfolio selection for risk-averse decision-makers under disruption and operational risks. This model assumes that the manufacturers are sensitive to lead time, so the demand of manufacturers depends on the suppliers who provide them with services. To manage risks, this model also considers proactive (supplier fortification, pre-positioned emergency inventory) and reactive (revision of allocation decisions) resilience strategies.

Article
Publication date: 8 March 2022

Roya Amiri, Javad Majrouhi Sardroud and Vahid Momenaei Kermani

The site layout has a significant impact on the efficiency of construction operations. Planning an effective site layout partly involves identifying and positioning temporary…

Abstract

Purpose

The site layout has a significant impact on the efficiency of construction operations. Planning an effective site layout partly involves identifying and positioning temporary facilities such as tower cranes and areas on the jobsite for materials storage. This study proposes an approach to optimizing the type and location of the tower crane and material supply point on construction sites.

Design/methodology/approach

The problem is formulated into an integer linear programming (ILP) model considering the total cost of material transportation as the objective function and site conditions as constraints. The efficacy of the approach is demonstrated by finding the optimum site layout for a numerical example. The proposed model is validated and verified using two methods.

Findings

Results indicate that the proposed model successfully identifies the type and location of the tower crane and the location of material supply point, leading to approximately 20% cost reduction compared with when such features of a site layout are decided solely based on experience and educated guesses of the construction manager.

Originality/value

The primary contribution of this study is to present a modified linear mathematical model for site layout optimization that exhibits improved performance compared with previous models. The type and location of the tower crane and the material supply point as decision variables are extracted directly from solving the proposed model. The proposed model will help enhance time and cost efficiency on construction sites.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 13 February 2017

Valdecy Pereira and Helder Gomes Costa

This paper aims to present a set of five models for the economic order quantity problem. Four models solve problems for a single product: incremental discounts with or without…

Abstract

Purpose

This paper aims to present a set of five models for the economic order quantity problem. Four models solve problems for a single product: incremental discounts with or without backorders and all-unit discounts with or without backorders, and the last model solves problems for the multiproduct case.

Design/methodology/approach

A basic integer non-linear model with binary variables is presented, and its flexible structure allows for all five models to be utilised with minor modifications for adaptation to individual situations. The multiproduct model takes into consideration the work of Chopra and Meindl (2012), who studied two types of product aggregations: full and adaptive. To find optimal or near-optimal solutions for the multiproduct case, the authors propose a simulated annealing metaheuristic application. Numerical examples are presented to improve the comprehension of each model, and the authors also present the efficiency of the simulated annealing algorithm through an example that aggregates 50 products, each one with different discount schemes and some allowing backorders.

Findings

Our model proved to be efficient at finding optimal or near optimal solutions even when confronted with mathematical complexities such as the allowance of backorders and incremental discounts.

Originality/value

Finally our model can process a mix of products with different discount schemes at the same time, and the simulated annealing metaheuristics could find optimal or near optimal solutions with very few iterations.

Details

Journal of Modelling in Management, vol. 12 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 9 May 2023

Anurag Mishra, Pankaj Dutta and Naveen Gottipalli

The supply chain (SC) of the fast-moving consumer goods (FMCG) sector in India witnessed a significant change soon after introducing the Goods and Services Tax (GST). With the…

Abstract

Purpose

The supply chain (SC) of the fast-moving consumer goods (FMCG) sector in India witnessed a significant change soon after introducing the Goods and Services Tax (GST). With the initiation of this tax, companies started moving from individual state-wise warehouses to consolidation warehouses model to save costs. This paper proposes a model that frames a mathematical formulation to optimize the distribution network in the downstream SC by considering the complexities of multi-product lines, multi-transport modes and consolidated warehouses.

Design/methodology/approach

The model is designed as mixed-integer linear programming (MILP), and an algorithm is developed that works on the feedback loop mechanism. It optimizes the transportation and warehouses rental costs simultaneously with impact analysis.

Findings

Total cost is primarily influenced by the critical factor transportation price rather than the warehouse rent. The choice of warehouses at prime locations was a trade-off between a lower distribution cost and higher rent tariffs.

Research limitations/implications

The study enables FMCG firms to plan their downstream SC efficiently and to be in line with the recent trend of consolidation of warehouses. The study will help SC managers solve complexities such as multi-product categories, truck selection and consolidation warehouse selection problems and find the optimum value for each.

Originality/value

The issues addressed in the proposed work are transporting products with different sizes and weights, selecting consolidated warehouses, selecting suitable vehicles for transportation and optimizing distance in the distribution network by considering consolidated warehouses.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 3
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 15 December 2017

Konstantinos Petridis, Evangelos Grigoroudis and Garyfallos Arabatzis

The design of a biomass supply chain is a problem where multiple stakeholders with often conflicting objectives are involved. To accommodate the aspects stakeholder, the supply…

494

Abstract

Purpose

The design of a biomass supply chain is a problem where multiple stakeholders with often conflicting objectives are involved. To accommodate the aspects stakeholder, the supply chain design should incorporate multiple objectives. In addition to the supply chain design, the management of energy from biomass is a demanding task, as the operation of production of biomass products needs to be aligned with the rest of the operations of the biomass supply chain. The purpose of the paper is to propose a mathematical framework for the optimal design of biomass supply chain.

Design/methodology/approach

An integrated mathematical framework that models biomass production, transportation and warehousing throughout the nodes of a biomass supply chain is presented. Owing to conflicting objectives, weights are imposed on each aspect, and a 0-1 weighted goal programming mixed-integer linear programming (WGP MILP) programming model is formulated and used for all possible weight representations under environmental, economic and social criteria.

Findings

The results of the study show that emphasis on the environmental aspect, expressed with high values in the environmental criterion, significantly reduces the level of CO2 emissions derived from the transportation of biomass through the various nodes of the supply chain. Environmental and economic criteria seem to be moving in the same direction for high weight values in the corresponding aspect. From the results, social criterion seems to move to the opposite direction from environmental and economic criteria.

Originality/value

An integrated mathematical framework is presented modeling biomass production, transportation and warehousing. To the best of the authors’ knowledge, such a model that integrates multiple objectives with supply chain design has not yet been published.

Details

International Journal of Energy Sector Management, vol. 12 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 16 October 2018

Vahid Kayvanfar, S.M. Moattar Husseini, Zhang NengSheng, Behrooz Karimi and Mohsen S. Sajadieh

This paper aims to optimize the interactions of businesses located within industrial clusters (ICs) by using a supply-demand hub in ICs (SDHIC) as a conjoint provider of logistics…

Abstract

Purpose

This paper aims to optimize the interactions of businesses located within industrial clusters (ICs) by using a supply-demand hub in ICs (SDHIC) as a conjoint provider of logistics and depository facilities for small- and medium-sized enterprises (SMEs) as producers, where all of these interactions are under supervision of a third-party logistics provider (3PL).

Design/methodology/approach

To evaluate the values of SDHIC, three mathematical models are proposed, optimally solved via GAMS and then compared. Also, a “linear relaxation-based heuristic” procedure is proposed to yield a feasible initial solution within a significant shorter computational time. To illustrate the values of SDHIC, comprehensive calculations over a case study and generated sets of instances are conducted, including several sensitivity analysis.

Findings

The experimental results demonstrate the efficiency of SDHIC for SMEs via combining batches and integrating the holding space of inventories, while the outcomes of the case study are aligned with those obtained from random sample examples, which confirms the trueness of used parameters and reveals the applicability of using SDHIC in real world. Finally, several interesting managerial implications for practitioners are extracted and presented.

Practical implications

Some of the managerial and practical implications are optimizing interactions of businesses involved in a supply chain of an IC containing some customers, suppliers and manufacturers and rectifying the present noteworthy gaps pertaining to the previously published research via using real assumptions and merging upstream and downstream of the supply chain through centralizing on storage of raw materials (supply echelon) and finished products (demand echelon) at the same place simultaneously to challenge a classic concept in which supply and demand echelons were being separately planned regarding their inventory management and logistics activities and showing the positive consequences of such challenge, showing the performance improvement of the proposed model compared to the classic model, by increasing the storing cost of raw materials and finished products, considering some disadvantages of using SDHIC and showing the usefulness of SDHIC in total, presenting some applied findings according to the obtained results of sensitivity analysis.

Originality/value

The key contributions of this paper to the literature are suggesting a new applied mathematical methodology to the supply chain (SC) of ICs by means of a conjoint provider of warehousing activities called SDHIC, comparing the new proposed model with the two classic ones and showing the proposed model’s dominancy, showing the helpful outcomes of collaborating 3PL with the SMEs in a cluster, proposing a “linear relaxation-based heuristic” procedure to yield a feasible initial solution within a significant shorter computational time and minimizing total supply chain costs of such IC by optimum application of facilities, lands and labor.

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