Journal of Industrial Engineering and Management Studies

A multi-objective mathematical planning model for a multi-level sustainable supply chain considering market boom and downturn

Document Type : Original Article

Authors

Ali Goodarzi
Ali Mostafaeipour
Hasan Hosseini Nasab
Yahia Zare Mehrjerdi

Department of Industrial Engineering, Yazd University, Yazd, Iran

https://doi.org/10.22116/jiems.2024.425390.1538
Abstract
A multi-level sustainable supply chain is related to a system that includes all activities necessary to transfer and supply materials and services from the producer to the consumer. In this system, the focus is on providing materials and services based on a number of objectives, such as reducing costs, increasing quality, and preserving the environment. Due to the increase of uncertainty in the supply chain, organizations need to use resources for the prediction of internal uncertainties, needs, and supply, thereby minimizing vulnerability and elevating the tolerance of their supply. Understanding the uncer-tainties and the parameters causing factors causes the problem of risk management to be raised in some cases. Therefore, main contribution of current study is multi-objective planning for a sustainable, multi-level, multi-period model, consid-ering the determined conditions and boom as uncertainty scenarios, has been specifically considered. The most important goal of the research is to determine the best units of each level (suppliers, factories, ...) of chain networks according to the points and criteria determined in the model and network, design and determine the best communication routes (network) between the selected units Each level is optimal with other levels as well as determining the volume of transported goods in these routes. For this purpose, a mathematical model has been developed, which is solved through the limited epsilon method and NSGA-II meta-heuristic algorithm. Data comparing the mathematical model and NSGA-II meta-heuristic algorithm show the calculated errors of 0.022, which considering that it is less than 0.1, the calculation error is acceptable and can be compared to the results of the error methods. The sensitivity analysis on the probability of the boom scenario showed the value of the objective function can change between 7398.51 and 3245.73. Finally, the sensitivity analysis of the probability of recession scenario showed the value of the objective function can change between 3291.64 and 9364.35. The findings of this research show that using the multi-objective planning model in the sustainable supply chain, taking into account the boom and bust of the market, can create significant improvements in the performance and profitability of the supply chain.

Keywords

Sustainable Supply chain
Uncertainty
Epsilon constraint
NSGA-II
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Journal of Industrial Engineering and Management Studies
Volume 10, Issue 2
December 2023
Pages 19-41

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