A Bi-Objective Programming Model for Reliable Supply Chain Network Design Under Facility Disruption

Abstract

Supply chain networks generally are composed of four main entity types: supplier, production centers, distribution centers and demand zones that consist of facilities whose activities involve the transformation of raw material into finished products that are later delivered from the suppliers to the end customers. Supply chain network design as the most important strategic decision in supply chain management plays an important role in the overall environmental and economic performance of the supply chain. The nature and complexity of today’s supply chains network make them vulnerable to various risks. One of the most important risks is disruption risk. Disruptions are costly and can be caused by internal or external sources to the supply chain, thus it is crucial that managers take appropriate measures of responses to reduce its negative effects. A recovery time of disrupted facilities and return it to the normal condition can be an important factor for members of the supply chain. In this paper, a bi-objective model is developed for reliable supply chain network design under facility disruption. To solve this model, we have applied two approaches, i.e., ε constraint method as an exact method and non- dominated sorting genetic algorithm (NSGAII) as a meta-heuristic method.