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Inventory routing problem for hazardous and deteriorating items in the presence of accident risk with transshipment option

Author

Listed:
  • Ali Timajchi

    (EM - EMLyon Business School)

  • Seyed Mohammad Javad Mirzapour Al-E-Hashem
  • Yacine Rekik

Abstract

In this study, we address an Inventory Routing Problem for hazardous and deteriorating pharmaceutical items in a healthcare network. Each hospital's demand is assumed to be deterministic but time varying over a finite planning horizon. Demand can be satisfied through a supply network, either from the main central pharmacy, or from other related hospitals' drugstores by allowing the transshipment option. The medicines deteriorate under a constant rate during the storage period. The proposed model is a bi-objective mixed integer mathematical programming. The first objective aims to minimize the total cost of logistics including ordering, transportation, delivery, pickup, shortage and inventory holding costs. The second objective function attempts to minimize the maximum accident loss during distribution among all periods. To consider the accident loss, for each route, two essential parameters are estimated based on historical data; the occurrence probability and severity index of accident. The model therefore attempts to utilize the best configuration of the routes and transshipment option to satisfy the demand while minimizing the costs and accident loss simultaneously. Several numerical examples are generated and solved by CPLEX and compared with the solutions of an efficient Hybrid Genetic Algorithm (HGA). The results show that the transshipment option not only can be used as a lever to increase the economic supply network performance through saving the routes, but also it can help the system to avoid risky routes.

Suggested Citation

  • Ali Timajchi & Seyed Mohammad Javad Mirzapour Al-E-Hashem & Yacine Rekik, 2019. "Inventory routing problem for hazardous and deteriorating items in the presence of accident risk with transshipment option," Post-Print hal-02312116, HAL.
    • Handle: RePEc:hal:journl:hal-02312116
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    Citations

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    Cited by:

    1. Aarti Singh & Ratri Parida, 2022. "Decision-Making Models for Healthcare Supply Chain Disruptions: Review and Insights for Post-pandemic Era," International Journal of Global Business and Competitiveness, Springer, vol. 17(2), pages 130-141, December.
    2. Misagh Rahbari & Alireza Arshadi Khamseh & Yaser Sadati-Keneti & Mohammad Javad Jafari, 2022. "A risk-based green location-inventory-routing problem for hazardous materials: NSGA II, MOSA, and multi-objective black widow optimization," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2804-2840, February.
    3. Mohri, Seyed Sina & Asgari, Nasrin & Zanjirani Farahani, Reza & Bourlakis, Michael & Laker, Benjamin, 2020. "Fairness in hazmat routing-scheduling: A bi-objective Stackelberg game," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    4. Mohri, Seyed Sina & Mohammadi, Mehrdad & Gendreau, Michel & Pirayesh, Amir & Ghasemaghaei, Ali & Salehi, Vahid, 2022. "Hazardous material transportation problems: A comprehensive overview of models and solution approaches," European Journal of Operational Research, Elsevier, vol. 302(1), pages 1-38.
    5. Neves-Moreira, Fábio & Almada-Lobo, Bernardo & Guimarães, Luís & Amorim, Pedro, 2022. "The multi-product inventory-routing problem with pickups and deliveries: Mitigating fluctuating demand via rolling horizon heuristics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    6. Elleuch Fadoi & Semi Boudabbous, 2021. "Application of Transshipment in the Supply Chain Management in Tunisia," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(4), pages 81-103.
    7. Fadoi Elleuch, 2023. "The "Lateral Transshipment" Is a Cooperative Tool for Optimizing the Profitability of a Distribution System," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 13(1), pages 128-151.
    8. Zhang, Peng & Xu, Xiaofeng & Shi, Victor & Zhu, Jing, 2020. "Simultaneous inventory competition and transshipment between retailers," International Journal of Production Economics, Elsevier, vol. 230(C).
    9. Zeinab Sazvar & Mahsa Zokaee & Reza Tavakkoli-Moghaddam & Samira Al-sadat Salari & Sina Nayeri, 2022. "Designing a sustainable closed-loop pharmaceutical supply chain in a competitive market considering demand uncertainty, manufacturer’s brand and waste management," Annals of Operations Research, Springer, vol. 315(2), pages 2057-2088, August.
    10. Asghari, Mohammad & Mirzapour Al-e-hashem, S. Mohammad J., 2020. "A green delivery-pickup problem for home hemodialysis machines; sharing economy in distributing scarce resources," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 134(C).

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