Addressing Disruption Risks in Location-Inventory Problems for Perishable Products through Lateral Transshipment

location-inventory problem (LIP) is a significant issue in supply chain management (SCM), aiming to reduce and integrate the costs of inventory and location. Perishable-LIP (PLIP) includes products, particularly those with a short expiration date, also known as perishable items. This feature necessitates the supply chain to maintain high reliability and resilience to minimize costs faced with disruption risks. Implementing reliability and resilience in PLIP (R۲-PLIP) requires methods such as lateral transshipment. These methods not only enhance the reliability and resiliency of the SC but also mitigate the risks associated with supply disruptions and demand fluctuations. Demand for perishable products is influenced by their expiration dates. By incorporating lateral transshipment, companies can ensure a more balanced inventory distribution. This study investigates the role of lateral transshipment in enhancing supply chain robustness. A multi-objective optimization model is developed, focusing on minimizing costs while maximizing resilience and service levels. The project aims to optimize the overall system efficiency. Additionally, the sensitivity analysis conducted in the research indicates that the shortage cost and the DC capacity each had the greatest variations in one of the objective functions. This research provides practical insights for designing resilient perishable supply chains.

Keywords:

Location-Inventory Problem , Resiliency , Lateral transshipment , Disruption Risk , Perishability , multi-objective optimization