Multi echelon, Multi period, Perishable Commodities Supply Chain Design

Abstract

Supply chain network design has been under extensive research since the early 1990s. In the present work, a multi-echelon supply chain producing a single perishable commodity over multiple planning periods is modeled. The mathematical model is built to find the optimum decision of operating facilities and distributors. The problem is formulated in non-linear programming, where the objective is to maximize the profit. Experiments were carried out to study the effect of different parameters of the problem on the profit and the quantities expired of the perishable product. The model proved to be effective solving such problem. In the present work perishable product, three echelons supply chain network design in dynamic environment is considered. The three echelons are facilities, distributors and customers. This problem is concerned with maximization of the profit as an objective. The variables are locating plants and distributers to operate and allocating quantities transported between each two successive echelons. Front line solver is used to solve this problem. The solution method is very effective to tackle the perishable supply chain. The results show that the validity duration of the product highly affect the design of the supply chain. Linear programming models have a variety of conventional mathematical treatment that cannot be applied to perishable supply chains as they result in non- linear models. Such models need a specific mathematical treatment.