Title: Mathematical modelling of the vehicle hybrid locating-routing problem in three-tier supply chain

Authors: Reza Ehtesham Rasi; Meysam Karami Pour; Rahman Noor Mohammadi

Addresses: Department of Industrial Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran. Nokhbegan Blvd, P.O. Box 34185-1416, Qazvin, Iran ' Department of Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran ' Department of Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran

Abstract: One of the important issues that has been widely used and raised to improve efficiency of transportation systems is vehicle routing problem (VRP) in recent decades. This study has examined complex integer mathematical model in three-tier supply chain. In this paper, three-objective mathematical model was presented for location and routing problem. The presented model was raised in three-tier supply chain in which products are shipped from manufacturers to distribution and from distribution to customers. In this study, we aim to design three-tier supply chain network that wants to reduce costs, which results in increased profits, and also to maximise quality of products. The above problem was introduced and multi objective mathematical model is provided. The exact method is used to solve MILP model. The results show that the total cost of system, including transport costs, maintenance reduced and as well as balanced distribution of costs and quality will increase.

Keywords: location-routing; supply chain; hybrid algorithm; simulation; VRP; vehicle routing problem.

DOI: 10.1504/IJMOM.2018.095665

International Journal of Modelling in Operations Management, 2018 Vol.7 No.1, pp.42 - 58

Received: 04 Oct 2017
Accepted: 13 Jan 2018
Published online: 16 Oct 2018 *