Optimizing Bi-Objective Multi-Echelon Multi-Product Supply Chain Network Design Using New Pareto-Based Approaches

Abstract

The efficiency of a supply chain can be extremely affected by its design which includes determining the flow pattern of material from suppliers to costumers, selecting the suppliers, and defining the opened facilities in network. In this paper, a multi-objective multi-echelon multi-product supply chain design model is proposed in which several suppliers, several manufacturers, several distribution centers as different stages of supply chain cooperate with each other to satisfy various costumers' demands. The multi-objectives of this model which considered simultaneously are 1-minimize the total cost of supply chain including production cost, transportation cost, shortage cost, and costs of opening a facility, 2-minimize the transportation time from suppliers to costumers, and 3-maximize the service level of the system by minimizing the maximum level of shortages. To configure this model a graph theoretic approach is used by considering channels among each two facilities as links and each facility as the nodes in this configuration. Based on complexity of the proposed model a multi-objective Pareto-based vibration damping optimization (VDO) algorithm is applied to solve the model and finally non-dominated sorting genetic algorithm (NSGA-II) is also applied to evaluate the performance of MOVDO. The results indicated the effectiveness of the proposed MOVDO to solve the model.