Purpose This study aims to design a reliable multi-level, multi-product and multi-period location-inventory-routing three-echelon supply chain network, which considers disruption risks and uncertainty in the inventory system. Design/methodology/approach A robust optimization approach is used to deal with the effects of uncertainty, and a mixed-integer nonlinear programming multi-objective model is proposed. The first objective function seeks to minimize inventory costs, such as ordering costs, holding costs and carrying costs. It also helps to choose one of the two modes of bearing the expenses of shortage or using the excess capacity to produce at the expense of each. The second objective function seeks to minimize the risk of disruption in distribution centers and suppliers, thereby increasing supply chain reliability. As the proposed model is an non-deterministic polynomial-time-hard model, the Lagrangian relaxation algorithm is used to solve it. Findings The proposed model is applied to a real supply chain in the aftermarket automotive service industry. The results of the model and the current status of the company under study are compared, and suggestions are made to improve the supply chain performance. Using the proposed model, companies are expected to manage the risk of supply chain disruptions and pay the lowest possible costs in the event of a shortage. They can also use reverse logistics to minimize environmental damage and use recycled goods. Originality/value In this paper, the problem definition is based on a real case; it is about the deficiencies in the after-sale services in the automobile industry. It considers the disruption risk at the first level of the supply chain, selects the supplier considering the parameters of price and disruption risk and examines surplus capacity over distributors’ nominal capacity.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2025 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.