Designing a green-resilient supply chain network for perishable products considering a pricing reduction strategy to manage optimal inventory: A Column Generation-based Approach

Document Type : Research Paper


1 Faculty of industrial and systems engineering, Tarbiat Modares University, Tehran, Iran

2 Faculty of Engineering, University of Kurdistan, Sanandaj, Iran



This paper tries to design an integrated green supply chain by considering several drivers of resiliency for perishable products. Supply chain resiliency aims to prevent the chain from moving toward unfavorable conditions and manage and mitigate disruptions. To minimize the disruption's effects, new strategies are investigated, including horizontal cooperation between distribution centers, emergency inventory reserves in production and distribution centers, and contracts with backup suppliers. In addition to resiliency, all supply chain members must act with a green supply chain approach to carry out production and distribution activities in such a way as to cause lessen damages to environment. Therefore, optimal routing is done to deliver the product at the minimum possible cost and the least pollution. The column generation decomposition algorithm is developed to improve the solution time as the model becomes complex and unsolvable or takes a long time to solve by standard mixed integer programming solvers. After designing an integrated supply chain for perishable products, we initially solved several test cases to determine the applicability of the column generation method to these issues. Subsequently, we employed the proposed solution method for a specific case study on the PEGAH dairy industry. A sensitivity analysis was conducted on the product's shelf life to examine the optimal production and inventory level variations. The results indicated that as the product's lifetime decreases, a lower quantity of the product is produced and stored.