Optimizing Facility Breakdown in Multi-Period Routing and Location for Heterogeneous Vehicles in a Circular Supply Chain

Document Type : Original Article

Authors

1 Department of Industrial Engineering, Yazd University, Yazd, Iran

2 Master of Science in Computer Engineering, Iran University of Science and Technology, Tehran, Iran

3 Department of Industrial Engineering, Najafabad Branch, Islamic Azad University, Najafabad, Iran

4 Doctoral Programme in Social Sciences, Business, Economics and Law, Åbo Akademi University, Turku, Finland

5 Department of Industrial Engineering, Bonab Branch, Islamic Azad University, Bonab, Iran

10.22116/jiems.2025.535630.1609
Abstract
This study presents a novel approach to optimizing facility breakdown scenarios within a multi-period routing and location framework for a two-echelon supply chain. The increasing emphasis on sustainability and resource efficiency has led to the emergence of circular economy principles in supply chain management. We develop a comprehensive model that addresses the complexities of vehicle routing and facility location while accounting for potential disruptions caused by facility breakdowns. By integrating multi-objective optimization techniques, our model aims to optimize two objectives. The first objective is to minimize the total cost per path. The second goal is to minimize the total repair time of vehicles to visit all areas. The Epsilon Constraint (EC) method has been used to solve the proposed model to obtain non-dominate solutions. The applicability of the proposed model is shown via a numerical problem. The results obtained from solving the proposed model are compared with the routing plan. The comparisons show that the results obtained through solving the proposed model are better than the current routing programs. Based on the obtained results, the lowest allocation cost and duration of vehicle repairs have been calculated separately in each period. In the first period, the lowest and in the second period, the highest amount of cost has been calculated. In addition, in the second period, the lowest and in the third period, the maximum service time of vehicles has been determined. Through a series of simulations and case studies, we demonstrate the effectiveness of our approach in achieving optimal routing strategies and facility placements, ultimately contributing to more robust and efficient supply chain operations. The findings underscore the importance of proactive planning in mitigating the impacts of facility breakdowns, providing valuable insights for practitioners and researchers in the field of supply chain management.

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