Simulation of transportation costs Supply chain network design taking into account price and quality dependent demand
Volume 6, Issue 1, Spring 2016, Pages 57-65
Sayed Mohammad mahdi Kazemi, Payman Taki
Abstract Proper network design has many effects on the performance, efficiency and effectiveness of supply chains in achieving the expected goals and meeting the needs of customers. In this research, a multi-level multi-objective model for supply chain network design considering pricing, product quality level and disruption is presented. The cost of transporting each vehicle is assumed to be a dynamic random function rather than a parameter. Therefore, discrete-event simulation has been used to estimate transportation costs. Due to the important role of risk and disruption concepts in supply chain network design, risk minimization along with profit maximization according to pricing and quality concepts have been defined as objective functions. Supply chain demand is considered a linear function of price and quality level of products. Finally, the supply chain network design problem is solved by simulation, risk and price-dependent demand with NSGA-II algorithm and the results are validated by MOSA algorithm.