A MEMETIC ALGORITHM FOR INTEGRATED FORWARD/REVERSE LOGISTICS NETWORK DESIGN IN A SUPPLY CHAIN

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PISHVAEI M.S.; ZANJIRANI FARAAHANI R.

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Journal: Year:2009 | Volume:42 | Issue:7 (117) Page(s): 947-960

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Title

A MEMETIC ALGORITHM FOR INTEGRATED FORWARD/REVERSE LOGISTICS NETWORK DESIGN IN A SUPPLY CHAIN

Author(s)

PISHVAEI M.S. | ZANJIRANI FARAAHANI R. | Issue Writer Certificate

Keywords

LOGISTICS NETWORK DESIGNQ3

SUPPLY CHAIN NETWORKQ3

MEMETIC ALGORITHMQ2

INTEGRATED LOGISTICS NETWORK DESIGNQ2

Abstract

In today's world, economic climate changes more quickly, and countries realize that globalization has made the world smaller and more competitive. Also, customers seek products and services that can respond to their specific needs and firms make effort to create competitive advantages to keep their profit and market share. All of the above trends lead firms and countries to focus on supply chain and integrated logistics. Making supply chain activities more effective and efficient is a sustainable competitive advantage for countries. One of the important parts of these activities is logistics activities, which can make a significant reduction in costs. Efficient management of logistics activities is a perfect source for creating competitive advantages. Besides, it allows firms to respond to their customers' specific needs, which in turn, results in customer satisfaction. Because designing the forward and reverse logistics network separately leads to sub-optimality, one of the proper areas to achieve more efficiency in logistics network is to design forward and reverse logistics network simultaneously. This paper proposes a MINLP model for integrated LOGISTICS NETWORK DESIGN to avoid the sub-optimality caused by a separate, sequential design of the forward and reverse networks. The proposed model could support multi-level capacity for each facility and also consider saving costs associated with locating the distribution centers and collection/inspection centers in the same places. To escape from the complexity of the proposed MINLP model, the model is made linear by defining a new variable and adding a constraint to the model. Since such network design problems belong to a class of NP-hard problems, we propose an efficient MEMETIC ALGORITHM with dynamic local search mechanism and we compare the associated numerical results by exact solutions in a set of problems to present the high-quality performance of the proposed algorithm. Future research could be aimed robust models to accommodate the changing parameters of the business environment during the life-time of the logistics network. Also addressing the demand uncertainty and the supply of return products in a multi-product integrated logistics network is a promising research avenue with significant practical relevance. Although our memetic dynamic search strategy proved to be competitive for the IFRLN network problem under consideration, other meta-heuristics algorithms such as tabu search or scatter search could offer promising avenues for developing richer integrated logistics networks as well.

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