Integrating Supply Chain Drivers in An r-Allocation p-Hub Median Location Problem by simultaneously considering the hub and supply chain constraints

One of the main open issues in supply chain literature is integrating supply chain drivers. Modeling of various aspects of the supply chain drivers simultaneously can contribute to the real-world application of resulting models in the industry. Such a modeling approach can interpret the interactions of drivers with each other more researches than the methods that examine independently these drivers. However, the literature on aspects of supply chain management is scarce. Therefore, the present study proposes an integrated model using the r-Allocation p-Hub Median Location Problem and the classical supply chain Models. The transportation and location drivers discussed in hub location models, the inventory and production drivers discussed in supply chain models. By combining these two approaches, the fifth driver, which is the exchange of information, was discussed. The problem investigated in this paper concerns a Multi-location, Multi-period, Multi-commodity, supply chain consisting of suppliers, producers, and consumers, which are linked in an r-allocation p-hub median network. This problem is formulated as a mixed-integer quadratic mathematical programming model and then solved by GAMS-IDE software. After proving the NP-Hard complexity of the problem, Authors proposed an algorithm for re-formulation of the MINLP problem to a MIP. To prove the applicability of the problem and test our algorithm, we also solve both problems with the well-known and real CAB data set. Numerical results show that due to the interconnected relationship between supply chain drivers, apply an integrated model can lead to more realistic solutions.

Keywords:

Multi-echelon supply chain , Supply Chain Performance Drivers , Uncapacitated r-Allocation p-Hub Median Problem