preprints.org > engineering > industrial and manufacturing engineering > doi: 10.20944/preprints202308.0282.v1

Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Version 1 : Received: 1 August 2023 / Approved: 2 August 2023 / Online: 3 August 2023 (09:57:29 CEST)

Most of the literature on the optimization problem of transportation in supply chain networks (SCN) considered fixed costs (FC). However, in the practical applications of this problem it is important to study the effect of FC. This paper examines the impact of fixed cost increase as well as the variable cost on the optimization of a Two-Stage SCN. To do so, two mathematical models for mixed-integer nonlinear programming are developed. The first model optimizes fixed and variable costs in addition to the opening cost, whereas the second model only optimizes variable and opening costs. To evaluate the effect of considering FC on the optimization supply chain problem, four groups of instances are randomly generated, and solved using Lingo. The results of the two models are compared utilizing the average percentage deviation. In addition, sensitivity analysis is performed to determine the impact of changes in opening and variable costs on the considered optimization problem. The computational results and the sensitivity analysis show that the first model with minimized FC outperforms the second model, which does not consider the FC in minimization and FC affect the optimization.

Supply chain; Network design; Two-Stage; Fixed cost; Sensitivity analysis

Engineering, Industrial and Manufacturing Engineering

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