Track: Operations Management

Abstract

For many items, decisions related to supply chain management have not been an easy task. It is then much more complex for perishable items than the other. Besides cost-efficiency, other factors, such as customer expectation and product freshness, have significant contributions to competitive advantages and business’s reputation. In other words, it would be flawed to care about either cost or profit ignoring other objectives. A multi-objective model for such items is, thus necessary. In this regard, this study introduces an integrated network design and inventory optimization model considering a perishable supply chain from a sustainable perspective. The mathematical model is to maximize profit, minimize the freshness loss of products at the point of demand fulfillment, and minimize the solid waste stress of the supply chain. In the result analysis, a numerical case is used to demonstrate the model utilization and the decision-making process. Max-Min Operator is to solve a multi-objective model. The model resulting shows tradeoffs among the objectives. Additionally, decision-makers can observe influences of the environment and society along with the economy on supply chain-related decisions, and vice versa.