Development of a Non-Linear Mathematical Model of Two-Level Closed-Loop Supply Chain by an Approach VMI for Perishable Products

In this study is investigated a VMI model in two-level closed-loop supply chain for perishable products including single-vendor with multi-retailers that retailers except vendor can get the product from each other retailers if needed. The product begins to deteriorate by a uniform distribution function after reaching a specific time that is called critical time. Considering the importance of the environmental effects of the product and the resulting biological concerns the management system collects unsold and perished products. Since the model is a NP-hard problem, after validating and solving it with Lingo software in small dimensions, the genetic algorithm and particle swarm optimization algorithm were developed to solve it in large dimensions. The results show that GA algorithm performs better than PSO algorithm. It should be noted that the parameters used in both algorithms were standardized and adjusted using the Taguchi method.

Keywords:

Supply Chain , Non-Linear Model , VMI , Closed-Loop , Perishable Product.