Bi-objectives Approach for a Multi-period Two Echelons Perishable Product Inventory-routing Problem with Production and Lateral Transshipment

Abstract

In this study, a two echelons supply chain system in which a supplier is producing perishable product and distribute it to multiple customers is considered. By allowing lateral transshipment mechanism, it is also possible to deliver products to some customers in some periods in bulk, then customers using their own vehicle to transship goods between each other seeking further reduction in the overall cost. The aim here is minimizing the production, inventory carrying cost, and distribution as the first objective, and transshipment cost as the second objective, which is contrary objectives, without facing any shortage anywhere in the chain during the planning horizon. This problem is formulated as a bi-objectives mixed integer programming (BOMIP), and then a proper Pareto front as a set of multiple decision alternatives is provided using NSGAII and NRGA approach. Novelty of this research is providing a bi-objectives mathematical modeling of perishable product inventory routing with production and transshipment (BO-P-PIRPT) that help the decision maker to choose the best mixture of routing and transshipment.