Karafan Journal

Karafan Journal

A New Model for the four-level multi-product supply chain optimization based on stochastic demand with probability distribution function

Document Type : Original Article

Authors
Shima Salehi moghadam 1
mohammad hossein Darvish motevalli 2
1 Assistant Professor, Department of Management, Allameh Askari International University, Tehran, Iran.
2 Assistant Professor,Department of Industrial Management, WT.C., Islamic Azad University, Tehran, Iran .
10.48301/kssa.2024.421665.2742
Abstract
Paying attention to cost reduction, increasing delivery speed and continuously improving the quality of products and services in a competitive environment has become a requirement for industries. Complexities at different levels and relationships along with uncertainty throughout the chain have challenged the decision-making of the supply chain. The general purpose of this research is to model and develop a multi-level, multi-product, multi-period supply chain network model with conflicting goals such as cost minimization, delivery time minimization, and system reliability maximization. This research is practical in terms of purpose and results and based on operational research approach, it is cross-sectional in terms of time and quantitative in terms of variables. In this research, a multi-objective mathematical model has been presented assuming that the demand is random and follows the probability distribution function. In order to validate the presented model, the supply chain data of the steel industry and Lingo software were used, and by applying the design of experiments, the mathematical relationship related to the cost objective function was estimated, and the multi-objective model was solved with the epsilon constraint approach. At the end, validation and sensitivity analysis of some parameters was done. The results showed that the presented model is able to optimize 4-level supply chains providing several non-perishable products that have random demand and their distribution is probable and improve the reliability of the supply chain.
Keywords
supply chain
multi-objective model
random demand and optimization
Subjects
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Karafan Journal
Volume 22, Issue 2
Humanities
Summer 2025
Pages 345-380

  • Receive Date 18 December 2023
  • Revise Date 03 February 2024
  • Accept Date 15 April 2024