A Multi-Objective Green Hub Location Problem With Multi Item-Multi Temperature Joint Distribution For
A Multi-Objective Green Hub Location Problem With Multi Item-Multi Temperature Joint Distribution For
Research article
a r t i c l e i n f o a b s t r a c t
Article history: This paper investigates a bi-objective green hub location problem, in which multiple perishable prod-
Received 3 November 2020 ucts with various storage temperatures can be distributed simultaneously in a cold supply chain (CSC).
Revised 13 February 2021
The objectives of this problem include minimizing the system’s total cost (including transportation, hub
Accepted 17 February 2021
establishment, adjustment of the storage compartments’ temperatures, and carbon emission costs) and
Available online 20 February 2021
maximizing the quality of the delivered product to the customer via the proposed model. Mixed-integer
Keywords: linear programming (MILP) in the GAMS software was employed to formulate this problem. Then, the
Hub Location ε -Constraint method was adopted to solve the presented bi-objective model to obtain the Pareto frontier
Perishable Products and consequently, a numerical example based on the CAB (Civil Aeronautics Board) database is presented
Cold Supply Chain to validate the applicability of the model. The solutions of the model provide information regarding the
Transportation hub location (HL), allocating customers to the hubs, allocating customers to the vehicles, and the se-
Multi-objective
quence of vehicles’ services for the Multi Item-Multi Temperature Joint Distribution of perishable prod-
ucts in CSCs. Moreover, the final results revealed the existence of a contradictory exchange between the
two objectives of this paper, implying that the higher is the quality of the delivered perishable product to
the customer, the greater is the system’s total cost. The novelty of the proposed model compared to other
hub location problems (HLPs) lies in the integration of the tactical/operational decisions with strategic
decisions to provide logistic solutions in CSCs by considering the carbon emissions as an environmental
factor in the transportation systems for the simultaneous distribution of dissimilar storage temperatures
perishable products within a CSC. The proposed model in this research can help the distributers of per-
ishable products by maintaining the quality of the delivered items and reducing the system’s total costs
and considering the carbon emissions of transportation systems. This study has practical implications
for the logistics and CSCs managers to not only establish a distribution network for multiple perishable
products on the basis of the findings, but also respond to the environmental sustainability.
© 2021 Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.
https://doi.org/10.1016/j.spc.2021.02.026
2352-5509/© 2021 Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.
M. Golestani, S.H. Moosavirad, Y. Asadi et al. Sustainable Production and Consumption 27 (2021) 1183–1194
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M. Golestani, S.H. Moosavirad, Y. Asadi et al. Sustainable Production and Consumption 27 (2021) 1183–1194
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M. Golestani, S.H. Moosavirad, Y. Asadi et al. Sustainable Production and Consumption 27 (2021) 1183–1194
transportation process, because of their shorter shelf lifetime and 1.4. Multi-products – multi-temperature distribution
reduced qualities over time (Hsu and Chen, 2014). These thermal
sensitive products are classified into two categorizations. The first In recent years, the application MTJD has increased due to the
group includes the products that should be consumed within a ongoing demands for perishable products. Reports indicate that
specified period of their shelf lifetime, and will be out of the con- global demand for perishable products such as refrigerated foods,
sumption cycle after being expired. Dairy products such as milk fresh fruits, flowers, and etc., has escalated from 42 million tons
and yogurt, pharmaceuticals such as vaccines and blood products in 1987 to 44 million tons in 1990 and 53 million tons in 20 0 0
fall into this category as they will be non-usable after their ex- (Cho and Hsu, 2008). More specifically, the simultaneous deliv-
piry dates (Coelho and Laporte, 2014; Liu et al., 2020). The second ery of foodstuffs with the need to transport at different temper-
group pertains to the products which will lose their quality gradu- atures is an important issue for the urban transportation system
ally over time until they become completely perished by the time (Hsu and Chen, 2014). Maintaining the quality of these products
of expiration. Fruits and vegetables are examples of this type of requires the transportation fleet to provide optimal temperature
perishable products (Coelho and Laporte, 2014). controls for the multi-temperature goods across the SC processes.
Therefore, the supply chain management (SCM) of perishable Nevertheless, most of the freezer transportation fleets that are cur-
products has certain characteristics and requirements which in- rently utilized in CSCs can solely deliver products with equal stor-
cludes the short shelf lifetime of products, the importance of age temperatures which implies that products with different stor-
timely delivery of products to the customers, quality assurance age temperatures have to be distributed through dissimilar deliv-
for products, special storage conditions, and special equipment eries (Hsu and Chen, 2014). Consequently, the disparity among the
and facilities for production, maintenance, and distribution (Soto- products’ storage temperatures requires the procurement of two or
Silva et al., 2017). These requirements combined with the ex- more transportation fleets, which increases the investment and op-
pansion of markets from the domestic to the global level, rigor- erational costs and decreases the efficiency of the available vehicles
ous competitive markets, and the necessity of meeting the ever- (Cho and Hsu, 2008).
growing customers’ demands in terms of the timely delivery of Therefore, the question about the optimal solution of distribut-
higher quality perishable products has led to the advent of CSC ing multi-temperature goods at the same time with lower logis-
(Hsu and Chen, 2014). tic costs has given rise to the emergent of a concept called multi-
Cold chain (CS) refers to the chain of refrigerated products, a product-multi-temperature simultaneous distribution. The Taiwan
particular type of goods which must always be controlled ther- Industrial Technology Research Center developed the MTJD to dis-
mally through warehousing and transportations (Li et al., 2006; tribute foods using vehicles capable of delivering multiple prod-
Saif and Elhedhli, 2015). The failure to deliver products promptly ucts with different storage temperatures simultaneously (Hsu and
could result in the imposed extra costs in the SCs including delay Chen, 2014; Kuo and Chen, 2010). The MTJD services have gained
fine, dismissing the employees, suspension of production lines, and more popularity to be used in stores, supermarkets, and cold per-
loss of market shares, whereas these challenges are more intensi- ishable goods markets (Hsu and Chen, 2014).
fied in the cold chain due to the characteristics of the distributed Not only the technological advancement in transportation sys-
products (Li et al., 2006). tems and multi-temperature refrigerated compartments have been
CSC and the supply chain management of perishable prod- offering new practical business solutions, but also the applica-
ucts have been growing fields of research among researchers. tion of MTJD has been a matter of discussion in several studies.
These studies mainly investigate models to maintain the qual- These studies mostly explore the opportunities that MTJD provides
ity of the products (Devapriya et al., 2017; Lin et al., 2020; to the perishable products industry in retaining the quality dur-
Ma et al., 2020), minimize the production and transportation ing the distribution processes (Agustina et al., 2014; Chen et al.,
cost (Bortolini et al., 2016; Soysal et al., 2014; Stellingwerf et al., 2018; Hsiao et al., 2017), minimizing the costs (transportation cost,
2018), and maximize the earned profit (Blanco et al., 2005; spoilage cost, etc.) (Hsiao et al., 2017; Pasandideh et al., 2015), and
de Keizer et al., 2017). maximizing the earned profit (Hsu and Chen, 2014), and reduce
the carbon emissions (Chen and Hsu, 2019).
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Hub location Green supply chain Perishable products Limitations on the number of vehicles Transportation-Fleet Planning Cold supply chain Multi products-multi temperatures
In the past decades, the world has witnessed rapid changes due
to the advancement of technologies, the globalized world economy,
the expansion of global markets, accelerated growth in the produc-
tion sectors (Shafiei et al., 2020; Subramanian et al., 2017). How-
ever, these economic developments have brought about serious en-
vironmental ramifications namely climate change, global warming,
ozone depletion, deforestation, exhaustion of non-renewable re-
sources, hazardous waste, converted habitat, and threats to biodi-
versity (Khan et al., 2020). Hence, on the grounds of global en-
√
√
√
√
vironmental awareness, GSC was introduced to incorporate en-
vironmental considerations into SCs by decreasing the raw ma-
terial flows and minimizing the adverse effects of consump-
tion and production operations such as perilous wastes and CO2
emissions of transportation vehicles (Badi and Murtagh, 2019;
√
√
√
√
Zhalechian et al., 2017). Additionally, temperature-controlled trans-
portation produces even more emissions than non-temperature-
controlled transportation due to the additional fuel prerequi-
sites for refrigeration and as a result of refrigerant leakage
(Stellingwerf et al., 2018). Therefore, the environmental impacts
of temperature-controlled transportation vehicles on the environ-
ment must be taken into account when planning GSC of perishable
products. Several studies have investigated the GSC of perishable
products from the standpoint of optimizing the fuel and emission
√
√
√
√
√
√
√
√
√
√
√
cost through the distribution process (Babagolzadeh et al., 2020;
Govindan et al., 2014; Zhang et al., 2019).
To the best knowledge of the authors, although there have been
many studies addressing the HLP in the literature, none of them
have addressed it along with carbon emissions and consideration
of the simultaneous transportation and delivery of dissimilar stor-
age temperatures items within a CSC, in order to improve the qual-
ity of the delivered products to the customers and also minimize
the total transportation costs. Therefore, this paper intends to fill
this research gap and presents an investigation of the HLP by com-
bining the strategic decisions with tactical/operational decisions
to propose a model, which is capable of simultaneous delivery of
√
√
multiple perishable products with dissimilar storage temperatures,
and concentrates on meeting the bi- objectives of minimizing the
system’s total cost and maximizing the product quality delivered
to the customer. In order to have a better understanding of the
presented research gap, Table 1 provides a thematic comparison
between the reviewed the related studies and the current paper.
√
√
√
√
√
√
√
√
√
√
2. Methods
√
√
√
√
Review of and comparison between recent research papers.
bution centers (hubs) and the second one is concerned with the
customer-related locations. In order for the model to be solved,
the bi-objective problem is firstly defined. Then, the research as-
sumptions in which the presented model is based on are out-
√
√
√
√
√
√
√
√
√
√
No.
13
14
15
16
17
18
19
21
22
23
24
25
10
12
20
1
2
3
4
5
6
7
8
9
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M. Golestani, S.H. Moosavirad, Y. Asadi et al. Sustainable Production and Consumption 27 (2021) 1183–1194
expectations. Additionally, this GHLP model considers simultane- These two objective functions are subjected to several con-
ous distribution of multiple products with different storage tem- strains. Eq. (3) represents the quality function, also known as mar-
peratures. Fig. 3 demonstrates the schematic of a viable solution ket purchase probability function, which is a conducive linear func-
to an example of the discussed problem. In this example, amongst tion to capture the relationship between the quality of perishable
the total number of 7 customers, 3 of which are assigned to be products and time (Bortolini et al., 2016).
served by the first hub and the remaining customers are decided Constraints (4) and (5) have been used to linearize the relation-
to be served by the second hub. The existed vehicles in the hubs ships among variables of Eq. (3).
are equipped with temperature-controlled cold chambers. Accord-
Ti
ing to Fig. 3, initially, the first vehicle goes to the first customer’s 1− Si
gi = min ,1 (3)
place and delivers his/her order. Then, it returns to the hub, goes to 1 − QRPi
the second customer, and delivers his/her order. The second vehi-
Ti
cle only has the third customer to serve. This problem is modeled 1− Si
based on a number of assumptions, the most important of which gi ≤ i = 1, ..., n (4)
1 − QRPi
are as follows:
1. The considered supply chain network has two levels (hubs and gi ≤ 1i = 1, ..., n (5)
customers). Constraint (6) denotes that the number of p hubs is located and
2. The number of hubs is predetermined. constraint (7) makes sure that each number of customer nodes is
3. The hubs have infinite capacity. allocated to only one hub. Constraint (8) states that any of the cus-
4. The vehicles in each hub are equipped with temperature- tomer nodes must be assigned nodes that are located as hubs.
adjustable cold chambers, the quantities of which are equal in
all hubs. Also, unlike most HLPs in which the number of vehi-
n
xii = H (6)
cles in each hub is unlimited, this value is hypothesized as a
i=1
limited number.
5. Decrease in the products’ qualities occurs only at the time of
n
(9)
The presented bi-objective MILP optimization model is math-
ematically formulated via two equations and several constrains.
Q
n
This model has two objective functions. The first objective function wqi j x jk ≤ Mdk j k, j = 1, ..., n; k = j (10)
(Eq. (1)) aims at the minimization of the total costs which includes q=1 i=1
transportation costs (first part of Eq. (1)), adjustment of the stor-
age compartments’ temperatures costs (second part of Eq. (1)), hub
Q
n
deployment costs (third part of Eq. (1)), and carbon emission costs dk j ≤ wqi j x jk k, j = 1, ..., n; k = j (11)
that has two portions (last part of Eq. (1)). The first and second q=1 i=1
portions of carbon emission costs function present the associated Constraint (12) points out that none of the customer nodes is
carbon emission when vehicles are less than full loaded and full served by itself. Constraint (13) shows the relationship between
loaded respectively. the customer nodes that are allocated to the hub which is served
by the carrier fleet.
n
n
n
Q
n
n
Min f1 = β Dik ( wqi j )xik + α β Dkl eikl dkk = 0k = 0, 1, ..., n + 1 (12)
i=1 k=1 j=1 q=1 k=1 l=1
n
n
Q
Q s
+ β Dki ( wqi j )xik + Y Mqt × [ f + h × (Tmax − t )] Ecik ≤ dki i, k = 1, ..., n; i = k; c = 1, ..., C (13)
k=1 j=1 q=1 q=1 t=1
⎡ ⎡ Q n
⎡ Q n
⎤⎤ ⎤ Constraint (14) shows the order of servicing for the fleet if both
( ε f − εe ) wqi j wqi j customer nodes i and j are allocated to a similar hub. Constraint
n ⎢n
n ⎢ ⎢ q=1 i=1 ⎥⎥ ⎥
Fk xkk + λ⎢ Dk j ⎢ + εf ⎢ ⎥⎥dk j ⎥
q=1 i=1 (15) makes sure that each one of the customer nodes that is as-
+
⎣ ⎣ Vl ⎣ Vl ⎦⎦ ⎦ signed to the hub k is serviced by just a single fleet.
k=1 k=1 j=1
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M. Golestani, S.H. Moosavirad, Y. Asadi et al. Sustainable Production and Consumption 27 (2021) 1183–1194
n+1
Xi jk = dki i, k = 1, ..., n; i = k (17)
j=0
i= j
assigned to hub k, then, either of these customer nodes must be Yqt = 1t = 1, ..., s (27)
q=1
served by a d transportation fleet.
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M. Golestani, S.H. Moosavirad, Y. Asadi et al. Sustainable Production and Consumption 27 (2021) 1183–1194
Table 2
Parameter values.
Parameter α λ β H εf εe νι Zb QRP h f C FK S LT
3.1. Problem-solving
After solving the problem for each of the objective functions 3.3. Sensitivity analysis
and determining the optimal values of each objective in the pre-
vious two sections, the Pareto approximation needs to be drawn To conduct the sensitivity analysis and provide difference sce-
through the ε -Constraint method. To enable this, it is necessary to narios for decision makers, three main parameters of the present
select one of the objectives as the primary objective and consider problem including the number of hubs located, demand rate, and
the other objective as the bounded constraint to the model. In this life span of the product were changed to investigate their asso-
study, the minimization of the system’s total costs was selected as ciated impacts on the two objective function values. Then, these
the main objective and the quality of the delivered product to the impacts based on the statistical analysis were presented.
customer was added to the model’s constraints, as demonstrated
in Eq. (31). 3.4. Sensitivity analysis of the number of located hubs
F2 ≥ ε (31)
The first sensitivity analysis concerns the effect of changing the
As an attempt to obtain the Pareto approximation, firstly, the number of hubs to be located on the objective function values. To
Epsilon values in Eq. (31) needs to be determined, which by it- enable this, all the parameters of the problem were kept constant
self requires the prior calculation of the Epsilon values step length. and the number of hubs was changed. Table 4 and Fig. 6 demon-
Eq. (32) represents the formula for calculating the Epsilon values strates the resulted impacts of the change in the number of hubs
step length. to be located on the objective function values.
F2∗ − F2
l= (32)
k 3.5. Sensitivity analysis of the demand value
In order to calculate the step length of increasing the Epsilon
value (L), the first objective function value is considered as the op- The second sensitivity analysis pertains to the effect of chang-
timal (F1 ), which implies that the quality of the delivered product ing the demand value on the values of the objective functions.
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M. Golestani, S.H. Moosavirad, Y. Asadi et al. Sustainable Production and Consumption 27 (2021) 1183–1194
Table 3
Solutions of the model solving.
15.9.11 1 5.6.8.9.11.15.21 4
6.8 2
5.21 3
23 1 19.22.23 12
19.22 2
10 1 1.7.10.16 13
16.7.1 2
24 1 24 14
3.25.2.20 1 2.3.18.20.25 17
18 3
Table 4
The results of sensitivity analysis of the hubs number.
Number of Cost objective function (F1 ) Product quality objective function (F2 )
hubs
Value (One hundred thousand monetary units) Percentage change Value Percentage change
Table 5
The results of sensitivity analysis of the demand value.
Parameters Cost objective function (F1 ) Product quality objective function (F2 )
No. Value
Value (One hundred thousand monetary units) Percentage change Value Percentage change
Fig. 6. The effect of changing the number of hubs on the objective functions.
Fig. 7. The impact of demand changes on the objective functions.
Similar to the first sensitivity analysis, while all the other param-
eters of the problem were kept constant, the value of the demand
was changed. The resulted effects of the increase in the demand Sensitivity analysis of the increase in the demand values and
value on the objective function values are depicted in Table 5 and the change in the number of hubs
Fig. 7. The fourth sensitivity analysis explores the impact of the
change in the number of hubs to be located on the objective func-
3.6. Sensitivity analysis of the product lifespan tion values in the case of increasing the demand values by 10%. For
this purpose, whilst all the other parameters of the problem were
The third sensitivity analysis delves into the effect of changing kept constant, the demand values increased by 10%, and the num-
the product lifespan on the values of the objective functions. Ac- ber of hubs was changed. The details on the effect of these changes
cordingly, the value of the product lifespan was changed, whereas on the two objective functions values are shown in Table 7 and
other parameters of the problem were unchanged. The results from Fig. 9.
the sensitivity analysis of the product lifespan are displayed in Sensitivity analysis of the decrease in the demand values and
Table 6 and Fig. 8. the change in the number of hubs
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M. Golestani, S.H. Moosavirad, Y. Asadi et al. Sustainable Production and Consumption 27 (2021) 1183–1194
Table 6
The results of sensitivity analysis of the product lifespan.
Product Cost objective function (F1 ) Product quality objective function (F2 )
lifespan
Value (One hundred thousand monetary units) Percentage change Value Percentage change
Table 7
The results of sensitivity analysis of the change in the hubs number and the 10% increase in the demand values.
Hubs Cost objective function (F1 ) Product quality objective function (F2 )
number
Value (One hundred thousand monetary units) Percentage change Value Percentage change
Fig. 10. The impact of the change in the hubs number and the 10% decrease in the
Fig. 8. The impact of the product lifespan changes on the objective functions.
demand values on the objective functions.
4. Conclusion
Table 8
The results of sensitivity analysis of the change in the hubs number and the 10% decrease in the demand value.
Hubs Cost objective function (F1 ) Product quality objective function (F2 )
number
Value (One hundred thousand monetary units) Percentage change Value Percentage change
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M. Golestani, S.H. Moosavirad, Y. Asadi et al. Sustainable Production and Consumption 27 (2021) 1183–1194
posed model. Then, the ε -Constraint method was adopted to solve Declaration of Competing Interest
the presented bi-objective model by transforming the problem into
a mono-objective and obtaining the Pareto frontier. The solutions The authors declare that they have no known competing finan-
to the model provided information regarding the HL, allocation of cial interests or personal relationships that could have appeared to
customers to the hubs, allocation of customers to the vehicles, and influence the work reported in this paper.
the sequence of vehicles’ services. In the following, several param-
eters of the present problem consisting of the number of hubs lo- Supplementary materials
cated, demand rate, and life span of the product were changed to
investigate their associated impacts on the objective function val- Supplementary material associated with this article can be
ues. Ultimately, the final results revealed the existence of a con- found, in the online version, at doi:10.1016/j.spc.2021.02.026.
tradictory tradeoff between the two objectives of this paper, in-
dicating that the higher is the quality of the delivered perishable References
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