EURO 2024 Copenhagen
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173. Managing Transportation and Inventory Simultaneously: A Dual-Objective Approach in Supply Chain Networks with Multiple Distribution Networks

Invited abstract in session TD-45: Decision Support for Sustainable Operations, stream Decision Support Systems.

Tuesday, 14:30-16:00
Room: 30 (building: 324)

Authors (first author is the speaker)

1. Lokesh Vijayvargy
Jaipuria Institute of Management, Jaipur
2. Saumyaranjan Sahoo
Operations Management & Decision Sciences, Indian Institute of Management Sambalpur

Abstract

In order to meet customer needs efficiently, logistics plays a crucial role within the broader supply chain by managing the forward and reverse flow, as well as storage, of products, services, and associated data. This study addresses the supply chain network problem, focusing on determining the optimal allocation of orders from multiple plants, warehouses, and distributors. The goal is to minimize total transportation and inventory costs while simultaneously optimizing locations, flows, shipment composition, and shipment cycle times. The formulated problem is treated as a multi-objective programming challenge and is solved using the value function approach to obtain the optimal order allocation of products. A case study on ABC Company's supply chain is conducted to assess the effectiveness and applicability of the developed multi-objective model. The results indicate optimal transportation and inventory costs for ABC Company, along with an optimal distribution network within India. These findings hold significant relevance for the manufacturing sector, especially for those grappling with logistics challenges in their supply chain networks. The developed model equips researchers and managers to navigate various uncertainties and logistics risks associated with supply chain networks.

Keywords

Status: accepted

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