Optimizing a bi-objective location-allocation-inventory problem in a dual-channel supply chain network with stochastic demands

Abstract

Integrating strategic and tactical decisions to location-allocation and green inventory planning by considering e-commerce features will pave the way for supply chain managers. Therefore, this study provides an effective framework for making decisions related to different levels of the dual-channel supply chain. We provide a bi-objective location-allocation-inventory optimization model to design a dual-channel, multi-level supply chain network. The main objectives of this study are to minimize total cost and environmental impacts while tactical and strategic decisions are integrated. Demand uncertainty is also addressed using stochastic modeling, and inventory procedure is the periodic review . We consider many features in inventory modeling that play a very important role, such as lead time, shortage, inflation, and quality of raw materials, to adapt the model to the real conditions. Since a dual-channel supply chain is becoming more important for sustainable economic development and resource recovery, we combine online and traditional sales channels to design a network. We generate five test problems and solve them by using the augmented ε-constraint method. Also, the Grasshopper optimization algorithm was applied to solve the model in a reasonable time for a large size problem. In order to provide managerial insights and investigate the sensitivity of variables and problem objectives with respect to parameters, sensitivity analysis was performed.

A scenario-based sustainable dual-channel closed-loop supply chain design with pickup and delivery considering social conditions in a natural disaster under uncertainty: a real-life case study

“…Additionally, Mehrjerdi and Shafiee ( 2021 ), who in their study proposed a three-objective model for a sustainable CLSC, only used the marketplaces to offer their desired products to the customers. However, as was said, few studies, such as Rezaei et al ( 2021 ), used the online markets in their model but only considered two economic and environmental goals in their study.…”

“…Despite all the advantages that online markets can provide (Yan et al, 2018 ), very few researchers have applied them in their proposed supply chain models. For example, Rezaei et al ( 2021 ) presented a dual-purpose model consisting of four levels, in the last level of which online and traditional markets were used to reduce costs and environmental effects as much as possible and meet uncertain demand. Also, Jia and Li ( 2020 ) investigated a CLSC incorporating internet marketplaces (platform services) and self-run shops, in which upstream producers can offer new and remanufactured items.…”

An inventory model of e-marketplace with a promotional program

“…Alawneh and Zhang (2018) studied the inventory management of a dual-channel warehouse for a retailer that works offline and online. Rezaei et al (2021) worked with a dual-channel supply chain inventory considering environmental performance while Archetti and Bertazzi (2021) discussed the recent challenges in e-commerce inventory and delivery routing.…”

A meta heuristic approach for reliable capacitated facility joint inventory-location problem with round-trip transportation under imperfect information of disruption in a Fuzzy environment

“…It is solved by a combination of the LR with a column generation (CG) algorithm. Rezaei et al (2021) proposed a bi-objective location-allocationinventory model to design a dual-channel, multi-level supply chain network. Salari et al (2022) developed a bi-objective transportation-location-inventory-routing problem in three echelons with stochastic constraints.…”