Risk-pooling strategy, lead time, delivery reliability and inventory control decisions in a stochastic multi-objective supply chain network design

A three‐echelon supply chain network design is considered and a multi‐objective mixed integer non‐linear problem is modeled. Risk‐pooling, lead time between facilities and the concept of the reliability are used to modeling. The objectives of the model are minimization of the supply chain’s total cost and maximization the delivery reliability, which can be equal to minimize the risk of not delivering the products with regard to stochastic demand. To solve the model a heuristic hierarchical algorithm is presented. Numerical examples are considered to test and verify the Pareto front. The results show the effectiveness and efficiency of the heuristic algorithm.