A multi-echelon multi-product stochastic model to supply chain of small-and-medium enterprises in industrial clusters

Vahid Kayvanfar*, S. M. Moattar Husseini, Mohsen S. Sajadieh, B. Karimi

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

22 Citations (Scopus)

Abstract

An Industrial Cluster (IC) is a set of similar and interrelated firms in a specific field situated in a geographic concentration to share joint resources. To date, the interrelations between ICs and Supply Chain Management (SCM) have been improperly mathematically studied, despite their inherent relationship. In this paper, a Supply-Demand Hub in Industrial Clusters (SDHIC) as a specific common provider of warehousing and logistics activities managed by a third-party logistics provider (3PL) is proposed to minimize the total cost of the considered supply chain. Activities of businesses in IC is modeled thorough a two-stage stochastic programming model followed by an acceleration techniques for the Benders decomposition. The numerical experiments comprising sensitivity analysis are conducted over a case study to show the attractiveness of the proposed model. Some managerial insights are presented based on the obtained results.

Original languageEnglish
Pages (from-to)69-79
Number of pages11
JournalComputers and Industrial Engineering
Volume115
DOIs
Publication statusPublished - Jan 2018
Externally publishedYes

Keywords

  • Benders decomposition algorithm
  • Industrial Clusters (IC)
  • Small and Medium Enterprises (SMEs)
  • Stochastic supply chain

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