Design of Multi-Periodical and Multi-Product Supply Chain Network with Regard to Disruption of Facilities and Communication Paths (Case Study: Subscription Plan for Publications)

Document Type : Original Article

Authors

1 Ph.D Student, Iran University of Science and Technology.

2 Associate Professor, Iran University of Science and Technology.

Abstract

One of the most important challenges of designing a supply chain network is possible disruptions. This study is intended to design a supply chain network considering the minimum amount of receiving as a customer satisfaction index. To overcome disruptions, the three main methods applied include establishing new facilities, using bilateral agreements, and using the existing facilities of instantaneous services market. To do so, a complex integer linear programming model is established and examined as a case study of a subscription plan for publications. In the case of disruptions, three possibilities will happen. Firstly, if the cost of disruption is low, it will be cost-effective to choose whether an instantaneous market or the adoption of shortage. Secondly, if the cost of disruption and shortage is high but less than the budget allocated to facilities, the bilateral agreements will be used. Finally, if the cost of disruptions and shortage is too high, the establishment of a new facility will be cost-effective. It should be noticed that by increasing for demand or in the probability of disruption, the cost gap between the use of the existing background facility and/or buying the service of the instantaneous market would be narrowed by establishing the facility.

Keywords

References

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Journal of Industrial Management Perspective
Volume 9, Issue 3 - Serial Number 35
December 2019
Pages 135-163

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