A Multi-objective Multi-Supplier Sustainable Supply Chain with Deteriorating Products, Case of Cut Flowers

Abstract

There is a growing concern, in the last decade, about the environment and social footprint of business operations. The subject of supply chain sustainability, simultaneously considering economic, environment and/or social values, has gained attention in the academia and from the industry. Particularly for deteriorating and seasonal products, such as fresh produce, the issues of timely supply and disposal of the deteriorated products are of high concerns. This research develops a new replenishment policy in a centralized sustainable supply chain for the deteriorating items. The model considers inventory and transportation costs, as well as the environmental and social impacts, with several transportation vehicles producing various pollution and greenhouse gas levels. Some variables are uncertain as the end-customer demand, partial backordered ratio and deterioration rate. We also consider backorders, quantity discount prices, non-linear holding costs, multiple transportation-route options, and uncertain demand. We consider the deterioration of in-stock inventory, and the deterioration during transportation. The best transportation routes and vehicles, and inventory policy are determined by finding a balance between financial, environmental and social criteria. We develop a linear multi-objective mathematical model and present a numerical example to demonstrate its applicability and effectiveness.

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