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Quality-based design of supply chains considering supplier and technology effects

  • Optimization
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Abstract

Producing high-quality products and reducing supply chain costs are strategic goals that help any organization to achieve the appropriate portion of the global competitive market. If the waste is grown in a supply chain, the quality level and efficiency of the firms will be declined and extra costs are provided. This paper presents a multi-stage multi-product multi-supplier multi-period supply chain model considering the wastes of raw materials, end products, and semi-finished products. Also, in the proposed model, the manufacturer can select the production technology considering cost and efficiency. The proposed model is a mixed-integer linear programming (MILP) model considering minimization of cost elements, including raw materials inspection waste, manufacturing waste, ordering, purchasing manufacturing technologies, transportation, production inventory holding, and raw material inventory holding. A numerical example is developed to validate the model, and a sensitivity analysis is provided to investigate fluctuation effects of parameters, including the waste rate of products, waste rate of purchased raw materials, raw materials purchasing price, transportation cost, and demand on the model. Also, several sample problems in different dimensions are defined, in which we demonstrate the model in large-size problems is NP-hard. To solve NP-hard problems, using evolutionary algorithms is necessary. For this reason, a genetic algorithm (GA) and a hybrid genetic algorithm and simulated annealing (GASA) algorithm, which fits with the proposed model configuration, are designed. Finally, we evaluate the performance of these two algorithms.

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Funding

This research was partially supported by Iran’s National Elites Foundation [15/96595].

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Correspondence to Taha-Hossein Hejazi.

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Appendix

Appendix

The distributions of the problem parameters are shown in Table

Table 21 Distribution of the parameters

21.

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Hejazi, TH., Asadi Zeidabadi, S. & Abbasi, M. Quality-based design of supply chains considering supplier and technology effects. Soft Comput 26, 5741–5763 (2022). https://doi.org/10.1007/s00500-022-06967-3

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