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A new Bi– level production-routing-inventory model for a medicine supply chain under uncertainty

This research presents a new bi-level bi-objective production-routing-inventory model for a medicine supply chain. | A new Bi level production-routing-inventory model for a medicine supply chain under uncertainty International Journal of Data and Network Science 2018 15 26 Contents lists available at GrowingScience International Journal of Data and Network Science homepage www.GrowingScience.com ijds A new Bi level production-routing-inventory model for a medicine supply chain under uncer- tainty Alireza Ghasemi Bijaghinia and Seyed Mohammad SeyedHosseinia a Department of Industrial Engineering Iran University of Science and Technology Tehran Iran CHRONICLE ABSTRACT Article history This research presents a new bi-level bi-objective production-routing-inventory model for a med- Received January 1 2018 icine supply chain. In this case the production is executed by multi-separated producers in a multi- Received in revised format June production line for different kinds of medicines which will be saved in stores for delivering to 16 2018 customers. The capacitated vehicle routing problem is considered in designing a distribution sys- Accepted June 20 2018 Available online tem from stores to customers. The goal of this model is to make a suitable trade-off between the June 27 2018 customer satisfaction and the budget cost. This problem has been formulated in a bi-level form Keywords where the first objective function is the minimization of the budget during the scheduled time and Production-Routing-Inventory the second one is the minimization of the shortage amount associated with the lost sale of medicine Problem demands delivering to drug stores. Uncertainty is considered as a nature of the main parameters Medicine Supply Chain of the problem. Then the robust approach was used to handle the associated uncertainty of related Uncertainty parameters and the resulted problem is solved by Benders decomposition algorithm. The results Multi-objective indicate that the model make an improvement in medicine supply chain. 2018 by the authors licensee Growing Science Canada 1. Introduction .