A multi-objective optimization model for locating the distribution warehouses in the logistic network supply chain: A case study of Bonny Chow Co.

Abstract

Today, in the existing competitive market, proper management of the supply chain has attracted a lot of attention to increasing profitability and customer satisfaction. Managers and decision-makers may use policies to survive in this situation, but a desirable outcome will only come when a precise and comprehensive model is used. Therefore, a detailed design and systematic planning of the supply chain seems necessary with all levels and units in order to increase the efficiency of the entire supply chain. In this research, two main objectives will be considered using multi-objective optimization methods. The first goal is to minimize the total cost of locating the warehouses in the supply chain, and the second goal is to maximize the level of customer satisfaction and service level of Bonny Chow Company. Computational results show the acceptable performance of the proposed method on a set of real-sized instances and demonstrate its efficiency in solving generated scenarios.