IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v167y2015icp271-281.html
   My bibliography  Save this article

Multi objective coordination of a supply chain with routing and service level consideration

Author

Listed:
  • Alaei, Saeed
  • Setak, Mostafa

Abstract

In recent years, there has been considerable research on supply chain coordination in the single objective framework. However, to the best of our knowledge, the multi objective coordination has not yet been considered in the literature. The supply chain studied in this paper, includes one vendor (central depot) and arbitrary number of buyers. The vendor distributes goods to buyers who face the Newsvendor problem with stochastic demand. The aim of the problem is to specify ordering and routing decisions by making trade-off among three objectives. Due to the complexity of the problem, the Harmony Search (HS) algorithm is proposed. Finally, coordinating the supply chain by means of a revenue sharing contract is considered with the goal of optimizing three objectives. The revenue sharing contract is designed such that the decision variables in the coordinated policy coincide with those of the centralized setting. A numerical study has been carried out to explain the efficacy of the model along with the trade-off among the multiple objectives.

Suggested Citation

  • Alaei, Saeed & Setak, Mostafa, 2015. "Multi objective coordination of a supply chain with routing and service level consideration," International Journal of Production Economics, Elsevier, vol. 167(C), pages 271-281.
    • Handle: RePEc:eee:proeco:v:167:y:2015:i:c:p:271-281
    DOI: 10.1016/j.ijpe.2015.06.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527315002091
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2015.06.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Govindan, Kannan & Popiuc, Maria Nicoleta, 2011. "Overview and classification of coordination contracts within forward and reverse supply chains," Discussion Papers on Economics 7/2011, University of Southern Denmark, Department of Economics.
    2. Al-Khayyal, Faiz & Hwang, Seung-June, 2007. "Inventory constrained maritime routing and scheduling for multi-commodity liquid bulk, Part I: Applications and model," European Journal of Operational Research, Elsevier, vol. 176(1), pages 106-130, January.
    3. Seyed Mohammad Javad Mirzapour Al-E-Hashem & Yacine Rekik, 2014. "Multi-product multi-period inventory routing problem with a transshipment option : A green approach," Post-Print hal-02313081, HAL.
    4. Joseph J. Spengler, 1950. "Vertical Integration and Antitrust Policy," Journal of Political Economy, University of Chicago Press, vol. 58(4), pages 347-347.
    5. Xu, Guangye & Dan, Bin & Zhang, Xumei & Liu, Can, 2014. "Coordinating a dual-channel supply chain with risk-averse under a two-way revenue sharing contract," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 171-179.
    6. Andy A. Tsay, 1999. "The Quantity Flexibility Contract and Supplier-Customer Incentives," Management Science, INFORMS, vol. 45(10), pages 1339-1358, October.
    7. Karen L. Donohue, 2000. "Efficient Supply Contracts for Fashion Goods with Forecast Updating and Two Production Modes," Management Science, INFORMS, vol. 46(11), pages 1397-1411, November.
    8. Chakraborty, Tulika & Chauhan, Satyaveer S. & Vidyarthi, Navneet, 2015. "Coordination and competition in a common retailer channel: Wholesale price versus revenue-sharing mechanisms," International Journal of Production Economics, Elsevier, vol. 166(C), pages 103-118.
    9. Arshinder & Kanda, Arun & Deshmukh, S.G., 2008. "Supply chain coordination: Perspectives, empirical studies and research directions," International Journal of Production Economics, Elsevier, vol. 115(2), pages 316-335, October.
    10. Mirzapour Al-e-hashem, S.M.J. & Rekik, Yacine, 2014. "Multi-product multi-period Inventory Routing Problem with a transshipment option: A green approach," International Journal of Production Economics, Elsevier, vol. 157(C), pages 80-88.
    11. El Ouardighi, Fouad, 2014. "Supply quality management with optimal wholesale price and revenue sharing contracts: A two-stage game approach," International Journal of Production Economics, Elsevier, vol. 156(C), pages 260-268.
    12. Vidović, Milorad & Popović, Dražen & Ratković, Branislava, 2014. "Mixed integer and heuristics model for the inventory routing problem in fuel delivery," International Journal of Production Economics, Elsevier, vol. 147(PC), pages 593-604.
    13. Kaur Arshinder & Arun Kanda & S. G. Deshmukh, 2011. "A Review on Supply Chain Coordination: Coordination Mechanisms, Managing Uncertainty and Research Directions," International Handbooks on Information Systems, in: Tsan-Ming Choi & T.C. Edwin Cheng (ed.), Supply Chain Coordination under Uncertainty, pages 39-82, Springer.
    14. Li, Kunpeng & Chen, Bin & Sivakumar, Appa Iyer & Wu, Yong, 2014. "An inventory–routing problem with the objective of travel time minimization," European Journal of Operational Research, Elsevier, vol. 236(3), pages 936-945.
    15. Li, Xiuhui & Wang, Qinan, 2007. "Coordination mechanisms of supply chain systems," European Journal of Operational Research, Elsevier, vol. 179(1), pages 1-16, May.
    16. Miranda, Pablo A. & Garrido, Rodrigo A., 2009. "Inventory service-level optimization within distribution network design problem," International Journal of Production Economics, Elsevier, vol. 122(1), pages 276-285, November.
    17. Giannoccaro, Ilaria & Pontrandolfo, Pierpaolo, 2009. "Negotiation of the revenue sharing contract: An agent-based systems approach," International Journal of Production Economics, Elsevier, vol. 122(2), pages 558-566, December.
    18. Kamalini Ramdas & Robert E. Spekman, 2000. "Chain or Shackles: Understanding What Drives Supply-Chain Performance," Interfaces, INFORMS, vol. 30(4), pages 3-21, August.
    19. Zhang, Qinhong & Dong, Ming & Luo, Jianwen & Segerstedt, Anders, 2014. "Supply chain coordination with trade credit and quantity discount incorporating default risk," International Journal of Production Economics, Elsevier, vol. 153(C), pages 352-360.
    20. Gérard P. Cachon & Martin A. Lariviere, 2005. "Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations," Management Science, INFORMS, vol. 51(1), pages 30-44, January.
    21. Vishal Gaur & Marshall L. Fisher, 2004. "A Periodic Inventory Routing Problem at a Supermarket Chain," Operations Research, INFORMS, vol. 52(6), pages 813-822, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Moon, Ilkyeong & Feng, Xuehao, 2017. "Supply chain coordination with a single supplier and multiple retailers considering customer arrival times and route selection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 78-97.
    2. Hadi Jahangir & Mohammad Mohammadi & Seyed Hamid Reza Pasandideh & Neda Zendehdel Nobari, 2019. "Comparing performance of genetic and discrete invasive weed optimization algorithms for solving the inventory routing problem with an incremental delivery," Journal of Intelligent Manufacturing, Springer, vol. 30(6), pages 2327-2353, August.
    3. Pourya Pourhejazy & Oh Kyoung Kwon, 2016. "The New Generation of Operations Research Methods in Supply Chain Optimization: A Review," Sustainability, MDPI, vol. 8(10), pages 1-23, October.
    4. Muñoz-Villamizar, Andrés & Santos, Javier & Montoya-Torres, Jairo R. & Jaca, Carmen, 2018. "Using OEE to evaluate the effectiveness of urban freight transportation systems: A case study," International Journal of Production Economics, Elsevier, vol. 197(C), pages 232-242.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Krapp & Johannes B. Kraus, 2019. "Coordination contracts for reverse supply chains: a state-of-the-art review," Journal of Business Economics, Springer, vol. 89(7), pages 747-792, September.
    2. Xingzheng Ai & Jing Chen & Jianhua Ma, 2012. "Contracting with demand uncertainty under supply chain competition," Annals of Operations Research, Springer, vol. 201(1), pages 17-38, December.
    3. Senlin Zhao & Qinghua Zhu, 2017. "Remanufacturing supply chain coordination under the stochastic remanufacturability rate and the random demand," Annals of Operations Research, Springer, vol. 257(1), pages 661-695, October.
    4. Chen, Jing & Bell, Peter C., 2011. "Coordinating a decentralized supply chain with customer returns and price-dependent stochastic demand using a buyback policy," European Journal of Operational Research, Elsevier, vol. 212(2), pages 293-300, July.
    5. Vafa Arani, Hamed & Rabbani, Masoud & Rafiei, Hamed, 2016. "A revenue-sharing option contract toward coordination of supply chains," International Journal of Production Economics, Elsevier, vol. 178(C), pages 42-56.
    6. Faranak Emtehani & Nasim Nahavandi & Farimah Mokhatab Rafiei, 2021. "A joint inventory–finance model for coordinating a capital-constrained supply chain with financing limitations," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-39, December.
    7. Kirshner, Samuel N. & Shao, Lusheng, 2018. "Internal and external reference effects in a two-tier supply chain," European Journal of Operational Research, Elsevier, vol. 267(3), pages 944-957.
    8. Koussis, Nicos & Silaghi, Florina, 2023. "Revenue-sharing and volume flexibility in the supply chain," International Journal of Production Economics, Elsevier, vol. 261(C).
    9. de Matta, Renato E. & Lowe, Timothy J. & Zhang, Dengfeng, 2014. "Consignment or wholesale: Retailer and supplier preferences and incentives for compromise," Omega, Elsevier, vol. 49(C), pages 93-106.
    10. Chen, Jing, 2011. "Returns with wholesale-price-discount contract in a newsvendor problem," International Journal of Production Economics, Elsevier, vol. 130(1), pages 104-111, March.
    11. Hadi Jahangir & Mohammad Mohammadi & Seyed Hamid Reza Pasandideh & Neda Zendehdel Nobari, 2019. "Comparing performance of genetic and discrete invasive weed optimization algorithms for solving the inventory routing problem with an incremental delivery," Journal of Intelligent Manufacturing, Springer, vol. 30(6), pages 2327-2353, August.
    12. Halati, Abolhassan & He, Yuanjie, 2010. "Analysis of supply chains with quantity based fixed incentives," European Journal of Operational Research, Elsevier, vol. 202(1), pages 214-222, April.
    13. Chen, Kebing & Xiao, Tiaojun, 2011. "Ordering policy and coordination of a supply chain with two-period demand uncertainty," European Journal of Operational Research, Elsevier, vol. 215(2), pages 347-357, December.
    14. Yang, Huixiao & Luo, Jianwen & Wang, Haijun, 2017. "The role of revenue sharing and first-mover advantage in emission abatement with carbon tax and consumer environmental awareness," International Journal of Production Economics, Elsevier, vol. 193(C), pages 691-702.
    15. Haim Mendelson & Tunay I. Tunca, 2007. "Strategic Spot Trading in Supply Chains," Management Science, INFORMS, vol. 53(5), pages 742-759, May.
    16. Xin Fang, 2018. "Analysis of Double Marginalization Effect on the Wholesale Price Contract Coordination," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(02), pages 1-15, April.
    17. Moon, Ilkyeong & Feng, Xuehao, 2017. "Supply chain coordination with a single supplier and multiple retailers considering customer arrival times and route selection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 78-97.
    18. Mutlu, Fatih & Çetinkaya, Sıla, 2020. "Supplier–carrier–buyer channels: Contractual pricing for a carrier serving a supplier–buyer partnership," International Journal of Production Economics, Elsevier, vol. 230(C).
    19. Hsueh, Che-Fu, 2014. "Improving corporate social responsibility in a supply chain through a new revenue sharing contract," International Journal of Production Economics, Elsevier, vol. 151(C), pages 214-222.
    20. Hyoduk Shin & Tunay I. Tunca, 2010. "Do Firms Invest in Forecasting Efficiently? The Effect of Competition on Demand Forecast Investments and Supply Chain Coordination," Operations Research, INFORMS, vol. 58(6), pages 1592-1610, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:167:y:2015:i:c:p:271-281. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.