A chance constrained fuzzy goal programming approach for perishable pharmaceutical supply chain network design
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A chance constrained fuzzy goal programming approach for perishable pharmaceutical supply chain network design Shiva Zandkarimkhani1 · Hassan Mina1 · Mehdi Biuki4 · Kannan Govindan2,3
© Springer Science+Business Media, LLC, part of Springer Nature 2020
Abstract In this paper, a bi-objective mixed-integer linear programming model is formulated for designing a perishable pharmaceutical supply chain network under demand uncertainty. The objectives of the proposed model are to simultaneously minimize the total cost of the network and lost demand amount. The proposed model is multi-product and multi-period and includes simultaneous facilities location, vehicle routing, and inventory management; hence, it is considered an operational-strategic model. Procurement discounts, the lifetime of products, storing products for future periods, lost demand, and soft and hard time windows are the main assumptions of the proposed model. A novel hybrid approach, based on fuzzy theory, chance constrained programming, and goal programming approach, is developed for solving the proposed bi-objective model. The validity of the proposed model and developed solution approach is evaluated using data from Avonex, a prefilled syringe distribution chain serving 11 health centers in Tehran. The proposed model indicates that some lost sales exist, and to overcome the lost sales, the case company needs to invest a little more in addition to the initial investment of around 2 billion tomans. The results obtained from implementing the model and the sensitivity analysis, using real-world data, confirm the efficiency and validity of the proposed mathematical model and solution approach. Keywords Pharmaceutical supply chain · Perishable products · Inventory–location–routing problem · Uncertainty · Goal programming approach
The paper is equally contributed, and the author order is based on the academic seniority. * Kannan Govindan [email protected] 1
School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran
2
China Institute of FTZ Supply Chain, Shanghai Maritime University, Shanghai 201306, China
3
Department of Technology and Innovation, Center for Sustainable Supply Chain Engineering, Danish Institute for Advanced Study, University of Southern Denmark, Campusvej 55, Odense M, Denmark
4
Department of Industrial Engineering, Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran
13
Vol.:(0123456789)
Annals of Operations Research
1 Introduction Supply chain network (SCN) design problem mainly aims at the optimal structuring of the network in terms of locating facilities, product flow between stages, storing products, and distributing them appropriately to serve customers quickly and efficiently (Mardan et al. 2019; Souza et al. 2019; Darbari et al. 2019). Concerning the design of SCNs, it is vital to consider all three strategic, tactical, and operational decisions at the same time, because tactical and operational decisions are deeply influenced b
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