Document Type : Original Article
Ph.D student, Department of Industrial Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran.
Assistant Professor, Department of Industrial Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran.
This study, in a pharmaceutical industrial zone, including relationships between suppliers, manufacturers and customers, are optimized using the concept of supply hub under 3PL management. In this regard, a new model for the supply chain of this industrial zone has been proposed in a sustainable approach, in which the economic, social and environmental axes are considered and then carefully solved by GAMS software. The goal is to minimize the costs imposed on the system, comprising the operating cost of the supply hub, the cost of transporting raw materials and products, the cost of ordering, the cost of storing raw materials and finished products, the cost of shortage of finished products considered as back-ordered, the cost of hiring and firing as well as the cost of destroying the waste of these pharmaceutical factories. An efficient heuristic relaxation-based approach is proposed in this paper. Then, a series of sample instances inspired by the case study have been implemented. The results obtained by GAMS and the proposed heuristic method are compared. Finally, to understand the sensitivity of different axes of the sustainability approach, several sensitivity analyses have been conducted and useful managerial and operational insights are presented for top management of such industries.
- Ageron, B., Gunasekaran, A. & Spalanzani, A. (2012). Sustainable supply management: an empirical study, International Journal of Production Economics, 140(4), 168-182.
- Ahmed, W., Najmi, A., Mustafa, Y. & Khan, A. (2019). Developing model to analyze factors affecting firms’ agility and competitive capability: a case of a volatile market, Journal of Modelling in Management, 14(2), 476-491.
- Alam, S. T., Ahmed, S., Ali, S. M., Sarker, S., Kabir, G., & ul-Islam, (2021). A. Challenges to COVID-19 vaccine supply chain: Implications for sustainable development goals. International Journal of Production Economics, 239, 108193.
- Badiezadeh, T., Saen, R.F. & Samavati, T. (2018). Assessing sustainability of supply chains by double Frontier network DEA: a big data approach, Computers and Operations Research, 98(10), 284-290.
- Barnes, E., Dai, J., Deng, S., Down, D., Goh, M., Chuin, L. H., & Sharafali, M. (2000). On the strategy of supply hubs for cost reduction and responsiveness: Logistics Institute-Asia Pacific, National University of Singapore.
- Chen, C. A. (2006). The investigation for the establishment of science parks: The case of Taiwan. Journal of American Academy of Business, Cambridge, 8(1), 62-69.
- Erenguc-, S-. S., Simpson, N.C., Vakharia, A.J. (1999). Integrated production/distribution planning in supply chains: An invited review. European Journal of Operational Research, 115, 219–236.
- Fatemi, M. S., Ghodratnama, A., Tavakkoli-Moghaddam, R., & Kaboli, A. (2022). A multi-functional tri-objective mathematical model for the pharmaceutical supply chain considering congestion of drugs in factories. Research in Transportation Economics, 101094.
- Fattahi, M., Mahootchi, M., Govindan, K. & Husseini, S.M.M. (2015). Dynamic supply chain network design with capacity planning and multi-period pricing, Transportation Research Part E: Logistics and Transportation Review, 81, 169-202
- Feizollahi, S., Soltanpanah, H., Farughi, H., & Rahimzadeh, A. (2019). Development of Multi Objective Multi Period Closed-Loop Supply Chain Network Model Considering Uncertain Demand and Capacity. The Journal of Industrial Management Perspective, 8(32), 61-95. (In Persian)
- Goodarzian, F., Hosseini-Nasab, H., Munuzuri, J. s., & Fakhrzad, M.-B. (2020). a multi-objective pharmaceutical supply chain network based on a robust fuzzy model: A comparison of meta-heuristics. Applied Soft Computing, 92, 106331.
- Gui, H.-m., & Ma, S.-h. (2010). A study on the multi-source replenishment model and coordination lot size decisionmaking based on supply-hub. Chinese Journal of Management Science, 18(1), 78-82.
- Kalantari, M., & Pishvaee, M.S. (2016). A Robust Possibilistic Programming Approach to Drug Supply Chain Master Planning. Journal of Industrial Engineering Research in Production Systems, 4(7), 49-67. (In Persian)
- Lee, H. L., & Whang, S. (2000). Information sharing in a supply chain. International Journal of Manufacturing Technology and Management, 1(1), 79-93.
- Li, G., Lv, F., & Guan, X. (2014). A Collaborative Scheduling Model for the Supply-Hub with Multiple Suppliers and Multiple Manufacturers. The Scientific World Journal, 2014 Jan 1, 12 pages.
- Li, J., Ma, S., Guo, P., & Zuo, Z. (2008). Analysis of Supply Chain Design with BOM Embedding Supply-Hub. The proceeding of the WiCOM.
- Li, J., Xiong, N., Sun, L., Yuan, A., Chen, J., & Cao, M. (2009). Supply Chain Design Model Based on Multi-Supply Hubs. Paper presented at the Computational Science and Engineering, CSE''09. International Conference on.
- Ma, S.-h., & Gong, F.-m. (2009). Collaborative Decision of Distribution Lot-sizing among Suppliers Based on Supply Hub. Industrial Engineering and Management, 14(2), 1-9, (Chinese).
- Mei, W., & Zhang, X. (2011). The Researches of Supply Hub Inventory Based on Supply Driven, Information Management, Innovation Management and Industrial Engineering (ICIII), 2011 International Conference on, 2, 434-436.
- Mohammadi, M., & Soleimani, H. (2020). Investigating Open Loop and Closed- Loop Supply Chain under Uncertainty (Case Study: Iran Teransfo Company). The Journal of Industrial Management Perspective, 10(38), 33-53. (In Persian)
- Ouyang, L., Wu, K., Ho, C., (2004). Integrated vendor–buyer cooperative models with stochastic demand in controllable lead time. International Journal of Production Economics, 92, 255–266.
- Patil, A., Shardeo, V., Dwivedi, A., Madaan, J., & Varma, N. (2021). Barriers to sustainability in humanitarian medical supply chains. Sustainable Production and Consumption, 27, 1794-1807.
- Qiu, X., & Huang, G. Q. (2011). On storage capacity pooling through the Supply Hub in Industrial Park (SHIP): The impact of demand uncertainty, Proceeding of the IEEE International Conference on Industrial Engineering and Engineering Management, 1745-1749, Singapore.
- Qiu, X., & Huang, G. Q. (2013a). Supply Hub in Industrial Park (SHIP): The Value of Freight Consolidation. Computers & Industrial Engineering, 65(1), 16-27.
- Qiu, X., & Huang, G. Q. (2013b). Storage pricing, replenishment and delivery schedules in a Supply Hub in Industrial Park (SHIP): A bilevel programming approach, International Journal of Production Research, 51(23-24), 6950-6971.
- Qiu, X., Huang, G. Q., & Lam, J. S. L. (2015). A Bilevel Analytical Model for Dynamic Storage Pricing in a Supply Hub in Industrial Park (SHIP). IEEE Transactions on Automation Science and Engineering, 12(3), 1017-1032.
- Qorri, A., Gashi, S., & Kraslawski, A. (2022). A practical method to measure sustainability performance of supply chains with incomplete information. Journal of Cleaner Production, 341, 130707.
- Qu, T., Luo, H., Cao, N., Fang, J., Zhong, R. Y., Pang, L. Y., Qiu, X., Huang, G. Q. (2012). RFID-enabled just-in-time logistics management system for “SHIP”- Supply Hub in Industrial Park, Proceeding of the 42th International Conference on Computers & Industrial Engineering, Cape Town, South Africa.
- Rajeev, A., Pati, R.K., Padhi, S.S., Govindan, K., (2017). Evolution of sustainability in supply chain management: a literature review. Journal of Cleaner Production, 162, 299–314.
- Sajadieh, M. S., Thorstenson, A., & Jokar, M. R. A. (2010). An integrated vendor–buyer model with stock-dependent demand. Transportation Research Part E: Logistics and Transportation Review, 46(6), 963-974.
- Seifbarghy, M. (2022) A multi-objective sustainable closed loop supply chain model considering suppliers evaluation and using SWARA-WASPAS method, to appear. The Journal of Industrial Management Perspective, 12(3), 63-88 (In Persian)
- Seuring, S., & Muller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699–1710.
- Shah, J., & Goh, M. (2006). Setting operating policies for supply hubs. International journal of production economics, 100(2), 239-252.
- Shuang-yan, L., De-zhi, Z, Fang-ping, J. (2013). Base Inventory Cooperation Strategy of Multi-parts with Supply-Hub. International Journal of Business and Management, 8(20), 96-104.
- (1997). The environmental management of industrial estates. Paris: France.
- Vafaeenezhad, T., Tavakkoli-Moghaddam, R., & Cheikhrouhou, N. (2019). Multi-objective mathematical modeling for sustainable supply chain management in the paper industry. Computers & Industrial Engineering, 135, 1092-1102.
- Zhengguo, W., Benfei, Z. & Ying, Y. (2010). Replenishment policy for supply hub based on Third-party logistics, Computer Application and System Modeling (ICCASM), 2010 International Conference on, 4, 193-197.
- Zuckerman, A. (2000). Compaq switches to Pre-position inventory model. World Trade, 13(4), 72-74.