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Redesigning a supply chain network with system disruption using Lagrangian relaxation: a real case study

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Abstract

In this paper, a strategic level of a supply chain is studied. To deal with its objective, restructuring distribution and manufacturing centers under the parameter uncertainty and system disruption are formulated as a mixed-integer nonlinear programming (MINLP) model. Because of the complexity of such a hard model, it is converted to a mixed-integer linear programming (MILP) model by conducting a simple linearization method. Capacity expansion and reduction, capacity consolidation, outsourcing, and transshipment strategies are used to reconfigure the considered supply chain. An inexact interval fixed-mix fuzzy approach is applied to deal with the parameter uncertainty, and an efficient two-stage model is conducted to analyze the system reliability. The developed model is solved by an efficient and effective Lagrangian relaxation procedure. Furthermore, a case study of dairy products is studied to present the model application and validation. Finally, several sensitivity analyses are carried out to identify the model behavior and solution algorithm validation.

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Funding

This study was funded by the Iranian National Science Foundation (INSF) [grant number 96001557].

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Correspondence to Ali Bozorgi-Amiri.

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Yousefi-Babadi, A., Bozorgi-Amiri, A. & Tavakkoli-Moghaddam, R. Redesigning a supply chain network with system disruption using Lagrangian relaxation: a real case study. Soft Comput 26, 10275–10299 (2022). https://doi.org/10.1007/s00500-022-07340-0

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