Optimization Bi Objective for Designing Sustainable Supply Chain Network Economic based Competition by Cost Management Approach
Subject Areas : Multi-Criteria Decision Analysis and its Application in Financial Management
Reza
Ehtesham Rasi
1
(Department of Industrial Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran.)
Keywords: Multi-objective, Optimization, time and evironemntal based competeion, Sustainability, supply chain management,
Abstract :
This paper presents an integrated mathematical model for cost – environmental based competition between sustainable supply chains (SCCs) with heterogeneous customers in four echelon supply with multi product. The main objective of this paper is to provide bi objective mathematical model for designing SSC network economic based competition and optimize by using meta-heuristic algorithms. Assuming the customers are heterogeneous in the above criteria i.e. cost and pol-lution decision making, we integrated mathematical model and formulated objectives and constraints based multi-echelon supply chain network. The main contribution of this research is to a discrete choice model is integrated into the supply chain network economic model and extends the inter supply chain competition to a new dimensions of cost and environmental. The model in this problem is solved using two metaheuristic algorithms NSGAII and MOPSP. Examples of real case study related to Emersan company is presented for model illustration and managerial insights such as profit maximization and minimize cost for Emersan company that participates in this supply chain network. Finally, NSGA-II performs better and has shorter time in terms of computational time, but MOPSO algorithm is more efficient in MID, SM, QM and DM indices. In comparison of these two algorithms, the performance of MOPSO algorithm is generally better than NSGAII by in indices.
References
[1] Amiri, A., Designing A Distribution Network In A Supply Chain System: Formulation And Efficient Solution Procedure, European Journal of Operational Research, 2006, 171, P.567–576. Doi: 10.1016/j.ejor.2004.09.018.
[2] Azevedo, S.G.,The Influence Of Green Practices On Supply Chain Performance: A Case Study Approach, Transportation Research Part E, 2011, 47, P.850-871. Doi: 10.1016/j.tre.2011.05.017.
[3] Bai, C., Sarkis, J., Green Supplier Development: Analytical Evaluation Using Rough Set Theory, Journal of Cleaner Production, 2010, 18(12), P.1200–1210. Doi: 10.1016/j.jclepro.2010.01.016.
[4] Beamon, B.M., Environmental And Sustainability Ethics In Supply Chain Management, Science and Engineering Ethics, 2005, 11, P. 221–234. Doi: 10.1007/s11948-005-0043-y.
[5] Bhattacharya, A., Mohapatra, P., Kumar, V., Dey, P. K., Brady, M., Tiwari, M. K., Nudurupati, N., Green Supply Chain Performance Measurement Using Fuzzy ANP-Based Balanced Scorecard: A Collaborative Decision-Making Approach,Production Planning and Control, 2013, 25(8), P.1–17.
Doi: 10.1080/09537287.2013.798088
[6] Bowen, F. E., Cousins, P. D., Lamming, R. C., Faruk, A. C., The Role Of Supply Management Capabilities In Green Supply, Production And Operations Management, 2017, 10(2), P.174–189. Doi:10.1111/j.1937-5956.2001.tb00077.
[7] Cramer, J., Experiences With Implementing Integrated Chain Management In Dutch Industry, Business Strategy And The Environment, 2001, 5(1), P.38-47, Doi:10.7480/abe.2017.15.1878.
[8] Carter, C.R., and Carter, J.R., Interorganizational Determinants Of Environmental Purchasing:Initial Evidence From The Consumer Products Industry, Decision Sciences, 1998, 29(3), P.28-38. Doi: 10.1111/j.1540-5915.1998.tb01358.
[9] Carter, CR., Jennings, MM., Purchasing And Social Responsibility: A Replication And Extension, The Journal Of Supply Chain Management, 2002, 40, P.4–16. Doi: 10.1111/j.1745-493X.2004.tb00175.x.
[10] Chen, Y. W., Wang, L. C., Wang, A., Chen, T. L., A Particle Swarm Approach For Optimizing A Multi-Stage Closed Loop Supply Chain For The Solar Cell Industry, Robotics And Computer-Integrated Anufacturing, 2017, 43(2), P.111-123. Doi: 10.1016/j.rcim.2015.10.006.
[11] Esfahbodi, A., Zhang,Y., Glyn,W., Sustainable Supply Chain Management In Emerging Economies: Trade-Offs Between Environmental And Cost Performance, Interntaional Journal Of Production Economic, 2017, 181(8), P.350-366. Doi: 10.1016/j.ijpe.2016.02.013.
[12] Gossler, T., Wakolbinger, T., Nagurney, A., Daniele, P., How To Increase The Impact Of Disaster Relief: A Study Of Transportation Rates, Framework Agreements And Product Distribution, European Journal Of Operational Research, 2019, 274(1), P.126–141. Doi:10.1016/j.ejor.2018.09.045.
[13] Green, K.W., Zelbst, P.J., Bhadauria, V.S. Meacham, J., Do Environmental Collaboration And Monitoring Enhance Organizational Performance?, Industrial Management and Data Systems, 2012, 112(2), P.186 -205. Doi: 10.1108/02635571211204254.
[14] Hirschland, M., Saving Services For The Poor. Bloomfield: Kumarian Press, 2005, P.390. ISBN: 978-1-56549-209-7.
[15] Jamshidi, R., Multi-Objective Green Supply Chain Optimization With A New Hybrid Memetic Algorithm Using The Taguchi Method, Scientia Iranica, 2012,19(3), P.1876-1886. Doi: 10.1016/j.scient.2012.07.002.
[16] Jonathan, D. L., Sustainable Supply Chains: An Introduction,Journal Of Operations Management, 2007, 25(6), P.1075-1082. Doi: 10.1016/j.jom.2007.01.012.
[17] Lapinskaitė, I., Kuckailytė , J., The Impact Of Supply Chain Cost On The Price Of The Final Product, Business, Management And Education, 2014, 12(1), P.109-126. Doi: 10.3846/bme.2014.08.
[18] Masoumi, A. H., Yu, M., and Nagurney, A., Mergers And Acquisitions In Blood Banking Systems: A Supply Chain Network Approach, International Journal Of Production Economics, 2017, 193(5), P.406–421. Doi:10.1016/j.ijpe.2017.08.005.
[19] Zhang, M. J., Ding, D., Qiong, T.Y., A Supply Chain Network Economic Model With Time-Based Competition, European Journal Of Operational Research, 2020, 280(3), P.889-908. Doi: 10.1016/j.ejor.2019.07.063 10.1016/j.ejor.2019.07.063.
[20] Marshall, D., McCarthy, L., Heavey, C., McGrath, P., Environmental And Social Supply Chain Management,Sustainability Practices: Construct Development And Measurement, Production Planning and Control, 2015, 26(8), P.673-690. Doi: 10.1080/09537287.2014.963726
[21] Nagurney, A., Besik, D., Yu, M., Dynamics Of Quality As A Strategic Variable In Complex Food Supply Chain Network Competition: The Case Of Fresh Produce, Chaos, 2018, 28(2), P.43-124. Doi:10.1063/1.5023683.
[22] Rasi, Ehetahm,R., A Cuckoo Search Algorithm Approach For Multi-Objective Optimization In Reverse Logistics Network Under Uncertainty Condition, International Journal Of Supply And Operations Management, 2018,5(1), P. 66-80. Doi: 10.22034/2018.1.5.
[23] Purba, R.,Greening The Supply Chain: A New Initiative In South East Asia, International Journal Of Operations and Production, 2002, 22(6), P. 935-945. Doi: 10.1108/01443570210427668.
[24] Rao, P., and Holt, D., Do Green Supply Chains Lead To Competitiveness And Economic Performance?, International Journal Of Operations and Production Management, 2005, 25(9/10), P.898-916. Doi: 10.1108/01443570510613956.
[25] Roy, V., Schoenherr, T., Charan, P., The Thematic Landscape Of Literature In Sustainable Supply Chain Management (SSCM) A Review Of The Principal Facets In SSCM Development, International Journal Of Operations and Production Management, 2018, 38(4), P.1091-1124. Doi: 10.1108/IJOPM-05-2017-0260
[26] Seuring, Stefan., A Review Of Modeling Approaches For Sustainable Supply Chain Management, Decision Support Systems,2013, 54(4),P.1513–1520.Doi: 10.1016/j.dss.2012.05.053.
[27] Seuring, S., Muller, M., From A Literature Review To A Conceptual Framework For Sustainable Supply Chain Management, Journal Of Cleaner Production, 2008, 16(3), P.1699-1710.
Doi:10.1016/j.jclepro.2008.04.020.
[28] Seuring, S., A Review Of Modeling Approaches For Sustainable Supply Chain Management, Decision Support Systems, 2013. 54(4), P.1513-1520. Doi: 10.1016/j.dss.2012.05.053.
[29] Wang, Z., Wang, Q., Zhang ,S., Zhao,X., Effects Of Customer And Cost Drivers On Green Supply Chain Management Practices And Environmental Performance, Journal Of Cleaner Production, 2019, 189(10), P.673-682. Doi: 10.1016/j.jclepro.2018.04.071.
[30] Wagner, M., Phu, N.V., Azomahou, T., Wehrmeyer, W., The Relationship Between The Environmental And Economic Performance Of Firms: An Empirical Analysis Of The European Paper Industry, Corporate Social - Responsibility And Environmental Management, 2002, 9(3), P.133-146. Doi: 10.1002/csr.22.
[31] Yusuf, Y., Gunasekaran, A., Papadopoulos, T., Auchterlounie, W., Hollomah, D., Menhat, M., Performance Measurement In The Natural Gas Industry: A Case Study Of Ghana’s Natural Gas Supply Chain, Benchmarking: An International Journal, 2018,25(8), P.2913-2930.Doi: 10.1016/j.jclepro.2018.04.071.
[32] Zamanian, M.R., Sadeh, E., Amini Sabegh, Z., Ehtesham Rasi., R., A Fuzzy Goal-Programming Model For Optimization Of Sustainable Supply Chain By Focusing On The Environmental And Economic Costs And Revenue: A Case Study, Advances In Mathematical Finance and Applications, 2019, 4(1), P.103-123. Doi: 10.22034/AMFA.2019.578990.1134.
[33] Zhu, O., Sarkis, J., Geng, Y., Green Supply Chain Management In China: Pressures, Practices And Performance, International Journal Of Operations and Production Management, 2005, 25(5), P.449-68. Doi: 10.1108/01443570510593148.
[34] Zhang, C., Chen, M., Designing And Verifying A Disassembly Line Approach To Cope With The Upsurge Of End-Of-Life Vehicles In China, Waste Management, 2018,76(6), P.697-07, Doi:10.1016/j.wasman.2018.02.031.
[35] Zhou, Y., Wang, Sh.,Generic Model of Reverse Logistics Network Design, Journal of Transportaion Systems Engineering and Information Technology, 2008, 8(3), P.71-78. Doi: 10.1016/S1570-6672(08)60025-2.
[36] Peykani, P., Mohammadi, E., Emrouznejad, A., Pishvaee,M.S., Malkhalifeh, Rostamy M., Fuzzy Data Envelopment Analysis: An AdjusTable Approach, Expert Systems with Applications, 2019, 136(1), P.439-452.Doi: 10.1016/j.eswa.2019.06.039.
[37] Peykani, P., Mohammadi, E., Emrouznejad, A., Pishvaee,M.S., Malkhalifeh Rostamy, M., Jabbarzadeh, A., A Novel Fuzzy Data Envelopment Analysis Based On Robust Possibilistic Programming: Possibility, Necessity And Credibility-Based Approaches, RAIRO-Operations Research, 2018, 52(4), P.1445-1463.
Doi: 10.1051/ro/2018019.
[38] Peykani, P., Mohammadi, E., Malkhalifeh Rostamy, M., Lotfi Hosseinzadeh, F., Fuzzy Data Envelopment Analysis Approach For Ranking Of Stocks With An Application To Tehran Stock Exchange, Advances in Mathematical Finance and Applications, 2019, 4(1), P.31-43. Doi:10.22034/AMFA.2019.581412.1155.
[39] Peykani, P., Mohammadi, E., Jabbarzadeh,A., Jahangirian, A.,Utilizing Robust Data Envelopment Analysis Model For Measuring Efficiency Of Stock, A Case Study: Tehran Stock Exchange, Journal of New Research in Mathematics, 2016, 1(4), P. 15-24.
[40] Peykani, P., Mohammadi, E., Esmaeili , F. S. S., Stock Evaluation Under Mixed Uncertainties Using Robust DEA Model, Journal of Quality Engineering and Production Optimization, 2019, 4(1), P.73-84. Doi:10.22070/JQEPO.2019.3652.1080.
[41] Peykani, P., Mohammadi, E., Interval Network Data Envelopment Analysis Model For Classification Of Investment Companies In The Presence Of Uncertain Data, Journal of Industrial and Systems Engineering, 2018, 11(14), P.63-72.
[42] Ebrahimi, B., Tavana, M., Rahmani, M., Santos Arteaga, J.F., Efficiency Measurement In Data Envelopment Analysis In The Presence Of Ordinal And Interval Data, Neural Computing and Applications, 2018, 30(6), P.1971-1982. Doi: 10.1007/s00521-016-2826-2.
[43] Rostamy Malkhalifeh, M., Esmaeili, F. S., Evaluating performance supply chain by a new non-radial network DEA model with fuzzy data, , Journal of Data Envelopment Analysis and Decision Science, 2012, 1(4), P.5-14.10. .1155/2020/7258519.
[44] Peykani, P., Mohammadi, E., Window network data envelopment analysis:an application to investment companies, International Journal of Industrial Mathematics, 2020, 12(1), P.89-99.
[45] Shahhosseini, M. Hu, G., Pham, H.,Optimizing Ensemble Weights for Machine Learning Models: A Case Study for Housing Price Prediction, In INFORMS International Conference on Service Sciencem, 2019, P.87-97.