Integrated Location Inventory Problem in an Agile Reliable Supply Chain with Perishable Products

Location and inventory problems are both among the key sub-problems of supply chain and integrating them can considerably decrease the costs of the supply chain. This paper deals with an integrated location-inventory problem in an agile two-echelon multi-period supply chain with multiple perishable products. Costumer demands are expected to be met by products that are as fresh as possible. A mixed integer nonlinear programming model is introduced for the problem and formulated in GAMS software. Two multi objective decision making methods namely goal programming and utility function are applied to solve the corresponding problem. Moreover, the extreme value for each of the objective functions have been calculated through individual optimization method.

Keywords:

location-inventory , Agile Supply Chain , freshness dependent demand , reliability , perishable products