Designing a multiperiod sustainable supply chain network for perishable products

Document Type : Original Article

Authors

1 Design & Production Engineering Dept., Faculty of Engineering, Ain-Shams University, Cairo, Egypt

2 Dept. of Industrial Automation, German University in Cairo, Egypt.

3 Design and Production Engineering, Faculty of Engineering Ain Shams University Cairo, Egypt

4 Basic & Applied Sciences Department, Faculty of Engineering; Arab Academy for Science, Technology and Maritime Transport

Abstract

This study addresses sustainable supply chain network design problem (SSCND) for perishable products which deteriorate or lose their value in a short time period. A mathematical model is presented to design a three-echelon supply network for perishable products that includes manufacturers, warehouse, and retailers. The model considers the environmental impacts through considering different costs arising from product expiration. The problem is formulated as a mixed-integer nonlinear programming (MINLP). The objective of the proposed model is to maximize the total supply chain profit by determining the optimal supply chain design and the quantities to be produced in each period as well as the quantities to be transferred from manufacturers to warehouse, and from the warehouse to retailers.

The developed model is solved using DICOPT solver within GAMS and has achieved the objective of maximizing the profit through the optimum supply chain design together with considering sustainability aspects through minimizing the environmental impact resulting from product expiration. A study for different factors affecting the supply chain profit such as demand at the retailers, manufacturers capacity and warehouse capacity is conducted.

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