Journal of Cleaner Production 251 (2020) 119628

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Journal of Cleaner Production

journal homepage: www.elsevier.com/locate/jclepro

Designing a sustainable multi-channel supply chain distribution

network: A case study
Arezoo Vafaei, Saeed Yaghoubi*, Javad Tajik, Farnaz Barzinpour
School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

a r t i c l e i n f o a b s t r a c t

Article history: The existence of numerous social, economic, and environmental problems and the need to improve the
Received 17 August 2019 long-term performance in organizations have led the supply chain designs toward sustainable designs.
Received in revised form On the other hand, due to the emersion of new technologies and the creation of new business models,
10 November 2019
the increase of competition level among retailers and the raise of customers expectations, the use of a
Accepted 8 December 2019
multi-channel distribution system is nowadays growing. Therefore, the appropriate distribution channel
Available online 16 December 2019
according to the product type and the number of vehicles for the transportation of the products is a
Handling editor; Dr. Govindan Kannan significant and important issue in retailing systems. In this regard, in this paper, a mixed-integer pro-
gramming model for the sustainable distribution network design, considering multi-product, multi-
Keywords: echelon and multi-transportation mode especially third party logistics (3PL), is presented. The economic,
Sustainable distribution network design environmental, and social objectives are mathematically formulated, where these objectives include: 1)
Retailing system minimizing transportation costs, purchasing vehicles and building warehouses as the first objective, 2)
Multiple channels minimizing the amount of carbon dioxide released by transport vehicles and building warehouses, 3)
Goal programming
maximizing the number of job opportunities. After linearization of the proposed model, it is solved using
Third party logistics (3PL)
the goal programming technique by GAMS software. Finally, to evaluate the applicability of the proposed
mathematical model, Digikala company is used as a case study.
© 2019 Elsevier Ltd. All rights reserved.

1. Introduction present study intends to design a sustainable distribution network

Due to the increase in production rates and geographical dis-
tances between suppliers and customers, distribution operations
have an important place in the supply chain performance. There-
fore, the supplier would inevitably bring his products to the
customer at long distances, through a person called the wholesaler
or retailer. A proper facility location, selecting appropriate distri-
bution channels, and choosing a suitable type of vehicle will have
social, environmental, and economic impacts on the region of the
construction site of the factory, in addition to the economic impact
on the performance of the industrial unit. Studies related to finding
the optimal location of warehouses, choosing the appropriate dis-
tribution channels, reducing the adverse environmental impacts
and the social problems caused by the lack of job positions, not only
have academic value but also have numerous economic benefits.
To get the customer satisfaction, cost reduction, and adverse
environmental impacts between the supplier and the customer, the
* Corresponding author.
E-mail address: yaghoubi@iust.ac.ir (S. Yaghoubi).
by employing a mixed-integer programming model with a multi-
channel, multi-objective, single-period, multi-product, and multi-
vehicle, multi-3PL problem and with the free shipping. Besides, in
the proposed model, it is considered that if the customer’s order is
higher than a specific price, free shipping is suggested by the
retailer companies.
One of the major challenges in the distribution network design
is choosing the optimal distribution channel among multi-channel
distribution networks. In these distribution channels, customers’
orders can be received from any facility (suppliers, retailer ware-
houses). Furthermore, sustainability objectives are used such as
reducing costs, reducing environmental impacts, and increasing the
number of job opportunities. In order to improve the distribution
network’s performance, it can be referred to the research carried
out by Cintron et al. (2010). As shown in Fig. 1, in the distribution
channel 1 and 2, the distribution of the product is carried out by the
company and in the distribution channel 3 and 4, the company
assigns the product to a company of the third-party logistics.
According to the above by considering the distribution network
costs and environmental and social impacts, the present paper is

https://doi.org/10.1016/j.jclepro.2019.119628
0959-6526/© 2019 Elsevier Ltd. All rights reserved.
2 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628
seeking an optimal method for distributing the product from the
supplier to the customer. In the multi-objective, single-period,
multi-product, and multi-vehicle, multi-3pl model delivering
products to customers is made up of several distribution channels.
Also, with the investigation of different distribution channels and
the choice of the appropriate vehicle types, the best distribution
channel of each product is selected for each customer and it is
presented as a mixed-integer programming model. Therefore, the
objectives of this paper are minimizing the cost of establishing
warehouse, the cost of buying the vehicles, the cost of transporting
products, minimizing the amount of carbon dioxide released by the
establishing warehouse and transporting different vehicles, and
maximizing the number of job opportunities. The model of this
paper is solved by CPLEX solver of the GAMS® optimization soft-
ware, and in order to validate the proposed model, the data of
Digikala company is used as a case study.
In the supply chain structure of the proposed model, the prod-
ucts are sent to the customer in two ways: a. direct: from suppliers
to customers and b. indirect: collecting from different suppliers,
transferring to the retailer’s warehouses, and then transferring
them to customers. Furthermore, the product distribution is done
in three ways: a. supplier distribution team, b. retailer distribution
team, and c. third-party logistics.
Designing an effective distribution network can significantly
reduce the cost of transportation and increase the customer satis-
faction. As a result, the design of the distribution network can be
considered as a key factor for the company’s profitability. At the
macro level, due to the importance and significance of the distri-
bution sector in the country’s gross domestic product and the
macro objectives set in the macro plans in this regard, improving
the efficiency of networks and distribution infrastructure is one of
the important points for reorganizing of the supply chain in the
country. The effects of this change will be on improving the
country’s economic indicators, especially GDP, the transition of
goods, increasing the share of services in the economy, and
strengthening the country’s economic status in the region. As a
result, one of the most important issues faced by managers is
deciding the distribution system of the goods. This decision has
direct effects on other marketing decisions such as pricing, adver-
tising, packaging, etc.
Our model has some advantages in comparison with other
studies, five of which will be deeply explained in what follows:

Multi-channel distribution networks are considered in the
modeling. Therefore, the best distribution channel for a specific
type of product is selected and this leads to the reduction of
transportation cost.
Fig. 1. Different distribution channels in the research of Cintron et al. (2010).

Considering different vehicles for using the retailer’s distribu-
tion team as well as selecting the optimal type of vehicle.

Modeling in order to consider free shipping.

Studying and modeling the different aspects of sustainability
(economic, environmental, and social) in the supply chain, in
accordance with the real-world needs, which have a practical
aspect.

Finally, the data of Digikala company is used as a case study to
demonstrate the applicability of the model.
Here are the questions of research of the paper:

What types of distribution channels are typically best suited for
specific types of products?

What is the optimal allocation of product from each warehouse
to the customers in the supply chain?

What will be the configuration of the supply chain network to
compromise between economic, environmental, and social
objectives?

What are the environmental and social impacts of the supply
chain and how are they calculated?
The rest of the paper is investigated as follows: The literature
review is examined in section 2. The problem definition and
mathematical model is expressed in section 3. The case study and
sensivity analysis are mentioned in section 4 & 5, respectively. The
conclution and future research of the paper are finally indicated in
section 6.
2. Literature review
In this section, the topics we are discussing fall into three areas:
network design, distribution systems, and sustainability.
Geoffrion and Graves (1974) were among the first authors to
consider middle distribution equipment in addition to the manu-
facturer’s equipment. They proposed a mixed-integer linear pro-
gramming model for the design of a multi-product distribution
system with capacity constraints. In a study by Jayaraman (1998),
the relationship between inventory management, facility locating,
and transportation policy designation has been considered. So that
it analyzes the interdependence between the three domains and
proposes an integrated model of mixed-integer programming for
the design of the distribution network.
Jayaraman and Ross (2003), have investigated PLOT design
system (production, logistics, outsourcing, transportation). The
system explores a range of distribution network design issues that
include several product types, a central production facility, multiple
 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628
distribution centers, temporary storage warehouses, and retailer
(customer), which each of the units demands to different products.
To solve this problem, a simulated annealing algorithm has been
used.
Alptekinoglu and Tang (2005) have studied a kind of retailer
network, which consists of suppliers, warehouses, and stores based
on the customer’s profiles. Distribution is carried out through two
direct (from warehouses) and indirect (through stores) channels.
Using the decomposition method, the problem is subdivided into
problems which they are solved using a heuristic method. A
research conducted by Amiri (2006) has addressed the issue of
designing a distribution network in a supply chain including the
location of facilities (factories and distribution depots) and yet
determined the best strategy for distributing the product from the
factory to the warehouse and from the warehouse to the customer.
For this purpose, a composite integer programming model is pre-
sented in which the facility has multiple capacity levels and the
optimal capacity of the facility is determined by the model. A
heuristic method has been proposed to solve the problem.
Ko et al. (2006) also have proposed a hybrid optimization/
simulation methodology in order to design a distribution network
for third-party logistics companies. In this study, a genetic algo-
rithm is used to solve the model. On the other hand, Selim and
Ozkarahan (2008) have designed a distribution network by
means of fuzzy goal programming. The purpose of the model is to
select the optimum number, location, and capacity levels of the
factories and warehouses for delivering the products to the retailers
with the lowest cost and maximum satisfaction level. In a study by
Lee et al. (2007), for the design of a forward and reverse integrated
distribution network in third-party logistics companies, an integer
linear programming model is presented. Due to the complexity of
the problem and a large number of variables and model constraints,
heuristic solving methods including genetic algorithm and two
greedy algorithms are proposed.
Several studies have been carried out on the status and function
of the network and the distribution channels of products. Hulthe
n
(2007) has concluded that the factors such as the creation of net-
works and large distribution chains, the market analysis and
optimal market segmentation could greatly reduce the cost of
physical distribution of goods. In the paper by Lorentz et al. (2007),
it is shown that the factors such as the use of modern technologies
(including e-commerce), the creation of large distribution chains
(such as retailers’ stores and proprietary stores), and advertising
tailored to each market segments are the placeholders to improve
the efficiency of distribution networks in these areas.
Ross and Jayaraman (2008) have presented a new heuristic so-
lution to locate temporary storage and distribution centers in the
design of the supply chain network. They have proposed two
heuristic methods in their study using a simulated annealing al-
gorithm and Tabu Search.
Akkerman et al. (2009) have presented a mixed-integer Pro-
gramming model for the production and distribution of persistent
ready-made meals. Cintron et al. (2010) have presented a multi-
criteria mixed-integer linear programming model for designing a
distribution network. The purpose of this model is to take tactical
decisions, or specifically, to design the flow of products from the
manufacturing plants to customers. For validate of the model, data
from a consumer goods company is applied, which is used from two
distribution centers located in the same area.
Grant and Banomyong (2010) have conducted a study on the
design of the distribution chain for consumer goods in Thailand and
Japan. In their study, they have concluded that the skill and
expertise of human resources, the availability of appropriate
3
infrastructure for the distribution and transportation of goods, and
the use of new technologies, had a great effect on improving effi-
ciency and reducing the distribution costs of consumer goods are in
these countries. Millet (2011) has examined the criteria for
achieving a sustainable supply chain that simultaneously in-
corporates economic, social and environmental considerations.
Sadjady and Davoudpour (2012) have proposed a mixed-integer
linear programming model for the design of a dual-level supply
chain network with multi-product delivery. Shu et al. (2013) have
proposed a model for designing a logistical distribution network,
including a supplier, a set of potential warehouses, and a set of
crude vendors offer two different product categories.
In a study by Mangiaracina et al. (2015), 126 articles from 1970
to 2013 have been studied. Bortolini et al. (2016) have presented a
multi-objective linear programming model for a sustainable food
distribution network. These objectives include minimizing opera-
tional costs, carbon effects, and delivery times. Zhang et al. (2016)
have presented a mixed-integer linear programming model for
designing a sustainable supply chain network with multiple
channels. This model has economic, social, and environmental
objectives. The first objective is to reduce the costs of setting up
facilities and the cost of transporting products. The second objec-
tive is to maximize customer service and the third objective is to
measure the environmental impact of the network in question,
which is based on the operation of the facility and the trans-
portation provided. Janatyan et al. (2018) have presented a multi-
objective model to design a pharmaceutical distribution network
according to the main concepts of sustainability. Yadav et al. (2019)
have introduced an MCDSCN MILP model to integrate online giants
with local distribution network retailers. Ouhimmou et al. (2019)
have addressed the problem of designing a robust distribution
network under demand uncertainty based on a real industrial case
study in pulp and paper.
Akgün and Erdal (2019) have studied the strategic-level
ammunition distribution network design problem of the GCG
(General Command of the Gendarmerie) where the purpose is to
determine the number and locations of depots and the service as-
signments considering several factors. Samani et al. (2019) recently
proposed a multi-objective mathematical model by incorporating
both quantitative and qualitative factors for distribution of blood
supply chain, considering a multilateral perspective in an uncertain
environment.
The different features of mathematical models in the literature
are summarized in Table 1, in the design of supply chain distribu-
tion network from 2010 to 2019 and are compared to the proposed
model in this paper. The review of the literature (Table 1) shows
that the number of articles which have been considered transport
mode selection, distribution channel selection and the three as-
pects of sustainability (economic, environmental, and social) at the
same time in their mathematical model, is very limited. Also, there
are no articles for free shipping model.
3. Problem definition and mathematical formulation
According to the introduction, reducing the costs of the distri-
bution network, and the environmental and social impacts of the
supplier and the customer is very important. Therefore, it is
necessary to examine the distribution of the product from the
supplier to the customer using a multi-objective, single-period,
multi-product, and multimodality with multiple modes of trans-
portation. Also, with the investigation of different distribution
channels and the choice of the appropriate vehicle types, the best
distribution channel of each product is selected for each customer.
4 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628

Table 1
Comparison of literature of supply chain distribution network design with our model.

Author Features

Multi- Transport Distribution Free Sustainability Objectives

objective mode channel selection Shipping
Economic Environmental Social Minimizing Minimizing Maximizing the number of
selection model
cost CO2 emission job opportunities

Cintron et al. (2010) ✓ ✓ ✓ ✓

Shu et al. (2013) ✓ ✓
Azad and ✓ ✓ ✓
Davoudpour
(2013)
Hlyal et al. (2015) ✓ ✓
Bortilini et al. (2016) ✓ ✓ ✓ ✓ ✓ ✓ ✓
Deqqaq and ✓ ✓ ✓ ✓
Abouabdellah
(2016)
Zhang et al. (2016) ✓ ✓ ✓ ✓ ✓ ✓
Halat and ✓ ✓
Hafezalkotob
(2017)
Barzinpour and Taki ✓ ✓ ✓
(2018)
Janatyan et al. ✓ ✓ ✓ ✓ ✓ ✓
(2018)
Yadav et al. (2019) ✓ ✓ ✓ ✓ ✓
Validi et al. (2018) ✓ ✓ ✓ ✓ ✓ ✓
Guerrero Campanur ✓ ✓
et al. (2018)
Mogale et al. (2019) ✓ ✓ ✓ ✓ ✓
Our study ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Therefore, designing a sustainable distribution network model with
The second objective is to minimize the amount of carbon di-
multiple channels is a fundamental issue of the present study, oxide released by transporting different vehicles and building
which has objectives such as minimizing transportation costs, warehouses.
purchasing vehicles, and building warehouses as the first objective,
The third objective is to increase employment by taking into
minimizing the amount of carbon dioxide released by transport account the number of job opportunities created by the con-
vehicles and building warehouses as the second objective, and struction of warehouses and transport of vehicles.
maximizing the number of job opportunities as the third objective.
To achieve these objectives, mathematical modeling has been
performed and then the obtained model is linearized and solved
using a goal programming method. As shown in Fig. 2, in the supply
3.1. Assumptions
chain structure of the proposed model, the products are sent in two
ways to the customer: a. direct: from suppliers to the customer and
The underlying assumptions of the problem are as follows:
b. indirect: collecting from different suppliers and transferring to
the warehouse of the retailer and then transferring it to the

Demand and customer location are definitive.
customer. The product distribution is also done in three ways: a.

The customer is the final consumer.
Supplier distribution team, b. Retailer distribution team, and c.

There is no capacity restriction for the warehouses.
Third party logistics.

The location of the suppliers is predefined.
In this section, there is a sustainable design of single-periodic,

Products are defined and each supplier supplies one type of
multi-product, multi-echelon, multi-transportation mode, and
product.
considering multiple channels. Hence, a mixed-integer program-

Locations and the customer demand are preset.
ming model has been formulated with multi objectives. In this

The potential locations of the warehouses are determined.
issue, we identify the build of the warehouse in the potential lo-

Any facility can obtain its products only from upstream facilities
cations, the possibility of assigning the product distribution to the
except for customers.
third-party logistics company, or the retailer distribution team, and

Customers can buy their products from just one distribution
the type and number of vehicles for the transportation of the
channel.
product. In Fig. 2, this concept is presented. In this sense, manu-

The customer demand should be met.
facturer/suppliers and warehouses are used as direct and indirect
facilities for customers. The objectives of the proposed model are as
follows:

The first objective is to reduce the cost of the retailer company, 3.2. Notations
which is including the cost of building warehouses, purchasing
the vehicles, and transporting products.
 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628 5

Sets:
i The set of suppliers (i ¼ 1,2, …, I)
j The set of customers (j ¼ 1,2, …, J)
s The set of supplier distribution team (s ¼ 1,2, …, S)
b The set of potential locations for warehouse (b ¼ 1,2, …, B)
o The set of third-party logistics (3PL) companies from the supplier to the warehouse (o ¼ 1,2, …, O)
e The set of third-party logistics (3PL) companies from the supplier/warehouse to the customer (e ¼ 1,2, …, E)
r The set of retailer distribution team from supplier to the customer/warehouse (r ¼ 1,2, …, R)
t The set of retailer distribution team from the warehouse to the customer (t ¼ 1,2, …, T)
Parameters:
M A large real number
bmax Maximum number of warehouses allowed to build
TDij The demand amount of customer j from supplier i
CAPir Capacity of retailer distribution team r vehicle for supplier product i
CAP’it Capacity of retailer distribution team t vehicle for supplier product i
PCi Product price i
m The price level for free shipping
CBr Cost of purchasing vehicle retailer distribution team r
CB’t Cost of purchasing vehicle retailer distribution team t
FCb Fixed cost of establishing a warehouse b
VCIIije Shipping cost of product flow from supplier i to customer j by 3PL e for free shipping if customer j purchases more than m
VCIijt Shipping cost of product flow from supplier i to customer j by retailer distribution team t for free shipping if customer j purchases more than m
VCIIIbjt The cost of transporting product flow from warehouse b to customer j by the retail distribution team t for free shipping if customer j purchases more than m
VCⅣbje The cost of transporting product flow from warehouse b to customer j by 3PL e for free shipping if customer j purchases more than m
ENVIs Environmental impacts of the supplier distribution team s
ENVIIb Environmental impacts of establishing potential warehouse b
ENVIIIo Environmental impacts of 3PL o
ENV Ⅳe Environmental impacts of 3PL e
EMIr Carbon di-oxide emission factor of vehicle retailer distribution team r
EMI’t Carbon di-oxide emission factor of vehicle retailer distribution team t
JOBIs The number of job opportunities created by the supplier distribution team s
JOBIIb The number of fixed job opportunities created by establishing potential warehouse b
JOBIIIo The number of job opportunities created by 3PL o
JOBⅣe The number of job opportunities created by 3PL e
JOBⅤr The number of job opportunities created by vehicle retailer distribution team r
JOBⅥt The number of job opportunities created by vehicle retailer distribution team t
d’ib The distance between supplier i and warehouse b
dij The distance between supplier i and customer j
d’’bj The distance between warehouse b and customer j
Continues Variables:
FLⅥibs The amount of product shipped from supplier i to warehouse b by supplier distribution team s
FLⅦibr The amount of product shipped from supplier i to warehouse b by retailer distribution team r
FLⅧibo The amount of product shipped from supplier i to warehouse b by 3PL o
FLIIIbjt The amount of product shipped from warehouse b to customer j by retailer distribution team t
FLⅣbje The amount of product shipped from warehouse b to customer j by 3PL e
FLIijt The amount of product shipped from supplier i to customer j by retailer distribution team t
FLIIije The amount of product shipped from supplier i to customer j by 3PL e
FLⅤibj The amount of product shipped between supplier i, warehouse b and customer j
NUMIijt The number of vehicles needed to transfer the product from supplier i to customer j by the retailer distribution team t
NUMⅦibr The number of vehicles needed to deliver the product from supplier i to the warehouse b by the retailer distribution team r
NUMIIIbjt The number of vehicles needed to transfer the product from stock b to customer j by the retailer distribution team t
Binary Variables:
Pb 1 if the warehouse b is to be established, and 0 otherwise
lj 1 if the order price of customer j is less than m, and 0 if the order price of customer j is more than m
Wije 1 if the supplier i is allocated to the customer j by 3PL e, and 0 otherwise
Xijt 1 if the supplier i is allocated to the customer j by the retailer distribution team t, and 0 otherwise
YIIIbjt 1 if the warehouse b is allocated to the customer j by the retailer distribution team t, and 0 otherwise
YⅣbje 1 if the warehouse b is allocated to the customer j by 3PL e, and 0 otherwise
ZⅥibs 1 if the supplier i is allocated to the warehouse b by the supplier distribution team s, and 0 otherwise
ZⅦibr 1 if the supplier i is allocated to the warehouse b by the retailer distribution team r, and 0 otherwise
ZⅧibo 1 if the supplier i is allocated to the warehouse b by 3PL o, and 0 otherwise
6 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628

3.3. Objective functions

FLⅧibo  Pb  M ci; b; o (8)
The three-objective mathematical model presented in this X
model is in the form of mixed-integer programming, which is Pb ¼ bmax (9)
presented in the following: b

X XXX XXX XXX  

Min F1 ¼ FCb  Pb þ CB’t  NUMI ijt þ CB’t  NUMIII bjt þ CBr  NUMⅦibr þ 365  1  lj
b i j t b j t i b r
XXX XXX XXX XXX 
 VCII ije  FLIIije þ VCI ijt  FLI ijt þ VCIII bjt  FLIII bjt þ VCⅣbje  FLⅣbje (1)
i j e i j t b j t b j e

X XXX XXX XXX

Min F2 ¼ ENVII b  Pb þ 365  ENVⅣe  dij  FLII ije þ EMI’t  dij  FLIijt þ EMI’t  d’’bj  FLIII bjt
b i j e i j t b j t
XXX XXX XXX XXX 
þ ENVⅣe  d’’bj  FLⅣbje þ ENVI s  d’ib  FLⅥibs þ EMIr  d’ib  FLⅦibr þ ENVIII o  d’ib  FLⅧibo
b j e i b s i b r i b o

(2)
X XXX XXX XXX
Max F3 ¼ JOBIIb  Pb þ JOBⅥt  NUMI ijt þ JOBⅥt  NUMIII bjt þ JOBⅤr  NUMⅦibr þ 365
b i j t b j t i b r
XXX XXX XXX XXX 
 JOBⅣe  FLII ije þ JOBⅣe  FLⅣbje þ JOBIII o  FLⅧibo þ JOBIs  FLⅥibs (3)
i j e b j e i b o i b s

The objective function (1) tries to minimize the total cost of the Single allocation constraint:
retailer company. The first part is related to the fixed cost of X X X X
establishing the warehouse. The second, third and fourth parts Wije þ Xijt þ YIII bjt þ YⅣbje ¼ 1 ci; b; j (10)
belong to the fixed cost of purchasing vehicles and the fifth part is e t t e
free shipping costs if the customer’s purchase is more than a certain Fulfillment of demand constraints:
amount. The objective function (2) minimizes the environmental
impacts of the network. The first part refers to the amount of car- X X X
FLIIije þ FLI ijt þ FLⅤibj  TDij ci; j (11)
bon dioxide emissions from the establishing of the warehouse. The e t b
second part is related to the amount of carbon dioxide emissions
from vehicle transportation by the supplier distribution team, the X X X
retail distribution team, and the third-party logistics company. The FLIIije  PCi þ FLIijt  PCi þ FLⅤibj  PCi
e t b
objective function (3) is to maximize the number of job opportu-  
nities. The first part shows the number of job opportunities created  m  lj þ M  1  lj ci; j (12)
by the establishment of the warehouse. The second, third and
Capacity vehicles constraints:
fourth parts relate to the number of job opportunities resulting
from the selection of the retailer distribution team and the fifth part FLI ijt FLIijt
refers to the number of job opportunities arising from the trans-  NUMI ijt  þ 1 ci; j; t (13)
CAP’it CAP’it
portation of the product by the third-party logistics company and
the supplier distribution team.
FLⅦibr FLⅦibr
 NUMⅦibr  þ 1 ci; b; r (14)
CAPir CAPir
3.4. Constraints
FLIIIbjt FLIII bjt
Flow and establishing of the warehouse constraints:  NUMIII bjt  þ 1 ci; b; j; t (15)
CAP’it CAP’it
FLIII bjt  Pb  M cb; j; t (4) Flow and allocation constraints:

FLIIije  Wije  M ci; j; e (16)

FLⅣbje  Pb  M cb; j; e (5)

FLⅥibs  Pb  M ci; b; s (6) FLIijt  Xijt  M ci; j; t (17)

FLⅦibr  Pb  M ci; b; r (7) FLIIIbjt  YIII bjt  M cb; j; t (18)

 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628 7

FLⅣbje  YⅣbje  M cb; j; e (19) ZⅥibs  Pb ci; b; s (25)

FLⅥibs  ZⅥibs  M ci; b; s (20) ZⅦibr  Pb ci; b; r (26)

ZⅧibo  Pb ci; b; o (27)

FLⅦibr  ZⅦibr  M ci; b; r (21)
Flow balancing constraints:
FLⅧibo  ZⅧibo  M ci; b; o (22) X X X
FLⅥibs þ FLⅦibr þ FLⅧibo
Allocation and establishing of the warehouse constraints: s r o
X X
¼ FLIII bjt þ FLⅣbje ci; b; j (28)
YIII bjt  Pb cb; j; t (23) t e

YⅣbje  Pb cb; j; e (24)

FLⅥibs ; FLⅦibr ; FLⅧibo ; FLIII bt ; FLⅣbje ; FLI ijt ; FLII ije ;

P P P P P 
s FLⅥibs þ r FLⅦibr þ o FLⅧibo þ t FLIII bjt þ e FLⅣbje
FLⅤibj ¼ ci; b; j (29)
2

Fig. 2. Illustration of the proposed supply chain.

8 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628

  
FLⅤibj ; NUMI ijt ; NUMⅦibr ; NUMIII bjt  0 & int (30) L2ijt  FLI ijt þ M  1  lj  1 ci; j; t (41)

 
Pb ; lj ; Wije ; Xijt ; YIII bjt ; YⅣbje ; ZⅥibs ; ZⅦibr ; ZⅧibo 2½0; 1 L2ijt  M  1  lj ci; j; t (42)
(31)
  
Constraints (4e8) states that the product flow occurs between L3bjt  M  1  lj þ FLIII bjt cb; j; t (43)
two tiers by the distribution teams when the warehouse has been
  
established. The constraint (9) specifies the maximum number of L3bjt  FLIIIbjt þ M  1  lj  1 cb; j; t (44)
permitted warehouses. The constraint (10) ensures that a distri-
bution team is assigned to each customer from each tier. The  
L3bjt  M  1  lj cb; j; t (45)
constraint (11) represents the satisfaction of customer demand. The
constraint (12) is for free shipping by the retailer distribution team   
when the order price of customer j is more than m. Constraints (13), L4bje  M  1  lj þ FLⅣbje cb; j; e (46)
(14), and (15) indicate the number of vehicles required by the
retailer distribution team, taking into account the capacity of the   
L4bje  FLⅣbje þ M  1  lj  1 cb; j; e (47)
vehicle. Constraints (16e22) suggest that the product flow occurs
between two tiers when the shipment is allocated to distributed  
teams. Constraints (23e27) states that the product is allocated L4bje  M  1  lj cb; j; e (48)
between the two tiers once the warehouse is established.
Constraint (28) indicates flow balance. The constraint (29) shows
the amount of product flow from the supplier to the customer by
the warehouse. Constraints (30) and (31) show the range of
variables. 3.6. Multi objective solution approach: goal programming

Goal programming is an optimization technique to solve prob-

3.5. Linearization of the proposed model
In the fifth part of the first objective function, two decision
variables are multiplied, which leads to the non-linearization of the
model. For linearization of the model, the variables are defined as
(32e35):
 
L1ije ¼ 1  lj  FLII ije ci; j; e ;
lems with multiple objectives. This technique seeks to find optimal
solutions, which is predefined goal values exist for one or more
objectives and minimize deviations from these goal values. This
methodology minimizes the sum of the positive and negative de-
viations ðdþ 
h or dh Þ from each of the goals. For each goal, weights
are given on a priority basis ðwh Þ, indicating the importance of the
objective function to other objectives. As stated above, the general
model of goal programming will be as follows.
(32)

  X
k  
L2ijt ¼ 1  lj  FLI ijt ci; j; t ; (33) Min wh dþ
h þ dh (49)
h¼1
 
L3bjt ¼ 1  lj  FLIIIbjt cb; j; t ; (34)
fh þ d þ *
h  dh ¼ f h h ¼ 1; …; k (50)
 
L4bje ¼ 1  lj  FLⅣbje cb; j; e ; (35)
dþ 
h :dh ¼ 0 h ¼ 1; …; k (51)
The variables L1ije ; L2ijt ; L3bjt , and L4bje are positive integers, if
To formulate a goal programming model, we must define the
lj ¼ 0, then they are equal to FLIIije ; FLIijt ; FLIII bjt , and FLⅣbje
values of the goals for the objective functions. To obtain the values
respectively, otherwise equal to zero. By applying the above
of the goals, the mathematical model of the problem is considered
changes, the fifth part of the first objective function becomes the
with each of the objective functions alone and the optimal value of
relation (36):
each of the objective function is obtained.
XXX XXX The objective function of the goal programming model is
VCII ije  L1ije þ VCI ijt  L2ijt
e
defined as (52).
i j i j t
XXX XXX
þ VCIII bjt  L3bjt þ VCⅣbje  L4bje ; (36) MinGP ¼ wc :dþ þ þ
c þ we :de þ ws :ds (52)
b j t b j e
In fact, in this model, we seek to minimize the total of these
And the constraints (37e48) will be added to the model: deviations.
  
L1ije  M  1  lj þ FLIIije ci; j; e (37) dþ
c : Positive deviation (undesirable) of the economic objective
function
  
L1ije  FLIIije þ M  1  lj  1 ci; j; e (38) dþ
e : Positive deviation (undesirable) of the environmental
objective function
  dþ
s : Positive deviation (undesirable) of the social objective
L1ije  M  1  lj ci; j; e (39)
function
  
L2ijt  M  1  lj þ FLIijt ci; j; t (40) dþ 
h :dh ¼ 0; h ¼ c; e; s (53)
 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628 9

Fig. 3. Digikala company supply chain.

4. Case study: Digikala company function is obtained.

The optimal value of each of the objective function is presented
The expanding use of the Internet has led business activists to in the Table 6.
use this to introduce and sell goods. Setting up Internet stores is the
most important way to use the Internet. Digikala is an online
retailer platform. The company was originally dedicated only to the 5. Sensitivity analysis
sale of digital and electronic products, but today there are various
product groups such as cosmetics, clothing, home appliances, In order to solve the model, using the data of Digikala, four
kitchens, books and stationery, toys, art and culture, sports, enter- constraints (54), (55), (56), and (57) are added to the model.
tainment, travel, supermarket, and a variety of car accessories and
tools from a variety of brands. The products provided on the FLIIije ¼ 0 ci; j; e; i ¼ 4; e ¼ 1 (54)
company’s website are made in two ways by purchasing from
The equation (54) prevents the flow of the product (washing
reputable companies and official and legal importers and their of-
machine) from the supplier i ¼ 4 (Qazvin) to the customer j, by the
ferings or the cooperation of some vendors with the company to
3PL company e ¼ 1 (express mail). It is due to the point that the
supply their products online for sale. In Fig. 3, an overview of the
Digikala company has a contract for the transportation of heavy
supply chain of the Digikala company is provided.
products with shipping.
Digikala company has no sales and after-sales services at any
point in the country other than the central unit located in Tehran,
FLIijt ¼ 0 ci; j; t; i ¼ 4; t ¼ 3 (55)
and all services are provided throughout the country only at this
center. Since Digikala is an online store and one of its goals is to The equation (55) prevents the flow of the product (washing
reduce unnecessary travel, it is not possible to deliver the order in machine) from the supplier i ¼ 4 (Qazvin) to the customer j, by the
the Digikala site. In Fig. 4, Digikala’s network supply chain is seen retailer distribution team t ¼ 3 (motorcycle), because the Digikala
for four of its products. company has a contract for the transportation of heavy products
with shipping and this product is not portable with the motorcycle.
4.1. Data collection X X X
FLⅤibj ¼ FLⅥibs þ FLⅦibr þ FLⅧibo
The method for extracting the required data for the input pa- s r o
X X 
rameters of the problem is presented in Table 2 As shown in Fig. 4, þ FLIIIbjt þ FLⅣbje ¼ 0
the network under study consists of three echelons. The first ech- t¼3 e¼1
elon is identified with suppliers. At this echelon, the retailer is
contracted with the four different suppliers as shown in Table 3. ci; b; j; i ¼ 4 (56)
Furthermore, in the second echelon, a warehouse was con-
structed in Tehran and 3 candidate places are considered for The equation (56) prevents the flow of the product (washing
establishing of the warehouse where the location of the ware- machine) from the supplier i ¼ 4 (Qazvin) to the warehouse b and
houses is shown in Table 4. the customer j, by the 3PL company e ¼ 1 (express mail) and the
Finally, the third echelon is related to customer, which is retailer distribution team t ¼ 3 (motorcycle). the Digikala company
considered by 31 provinces as customer. Table 5 indicates the in- has a contract for the transportation of heavy products with ship-
dicator number and province name for the customer. ping and the product of the washing machine is not portable with a
motorcycle.
4.2. Optimal amount of objective functions
Pb ¼ 1 cb; b ¼ 1 (57)
To formulate the goal programming model, one must define the Due to the fact that Digikala company has a warehouse in the
values of the goals for the objective functions. To obtain the goal Tehran province, therefore P1 ¼ 1. Then, the decision making is
values, the mathematical model of the problem with each objective done just for the construction of potential warehouses in Qom, Fars,
function is considered separately, and the optimal value of each and Khorasan Razavi.
10 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628

Fig. 4. Digikala’s supply chain for four products including steam, suitcase, copper dish and washing machine.

5.1. Sensitivity analysis of parameter of cost of shipping
In this section, changes to the objective function of the goal
programming model and the percentage of deviations are
measured relative to the parameter of the cost of shipping. The
results of this measure are presented in Table 7 and Fig. 5.
Fig. 5 shows variations of the objective function of the goal
programming model and the percentage of the deviation relative to
the transportation parameter. By reducing the transportation cost
parameter, only the value of the objective function of the goal
programming model and deviations percentage of the economic
objective function is reduced. These changes do not occur on the
deviation percentage of environmental and social objective func-
tions, which seems to be due to the lack of change in the model’s
response and model’s decision making. By increasing the trans-
portation cost parameter by 10%, the value of the objective function
of the goal programming model and the deviation percentage of the
economic objective function increase. But this change is not
 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628 11

Table 2
How to extract the data input parameters of the problem.

Row Input parameters of the problem Extracted data

1 Dimensions of the vehicle chamber www.almascantin.ir

2
Supplier product price
Headquarter experts and after-sales service of Digikala company

Purchase rate for free shipping
www.digikala.com

Product shipping Costs by third-party logistics company

Product dimensions

Customer satisfaction of the product
3 Product demand Coefficient ¼ Total population of Iran  Customer satisfaction of the product
Demand of the province ¼ Provincial population  Coefficient
4 Product shipping cost by retailer distribution team Distance traveled by vehicle  Vehicle fuel consumption  Price per liter of gasoline/
diesel
5 Average emissions of carbon dioxide per kilometer by vehicles Ameri and Zahed (2013)
6 The amount of carbon dioxide emissions in retailer company distribution Rai et al. (2011)
warehouses
7 The number of job opportunities created by establishing potential warehouse Hezarkhani (2017)
8 Determine the distance between network components www.bahesab.ir/map/distance

Table 3
Indicator number, location and supplier product i.

Supplier indicator number i Supplier location i Supplier product i

1 Amin Hozur Crossing, Tehran Province Steamer

2 4 Baghe Bala street, Isfahan Province Suitcase
3 Basij Square, Zanjan Province Copper dish
4 Alborz Industrial Town, Qazvin Province Washing machine

reflected in the deviation percentage of environmental and social
functions. It is also noted that with an increase of 20e50 percent of
the transportation cost parameter, the value of the objective
function of the goal programming model and the deviation per-
centage of the environmental objective function will be signifi-
cantly increased. However, the deviation percentage of the
economic objective function decreases and there is no change in
the deviation percentage of social function.
5.2. Effect of the costs on the objective function of the goal
programming model
In this section, the effect of the parameter of the costs of pur-
chasing a vehicle, transporting and constructing a warehouse are
measured on the objective function of the ideal model.
In Fig. 6, it can be seen that with the increase of the three pa-
rameters of the costs of purchasing a vehicle, transport, and
warehouse construction, the trend of changes in the value of the

Table 4
Indicator number and candidate points for establishing warehouse b.

Warehouse indicator number b Warehouse location b

1 Shad Abad Street, Tehran province

2 Shokuhie Industrial Estate, Qom province
3 Shiraz Industrial Estate, Fars province
4 Fanavarihaye Bartar Industrial Estate, Razavi Khorasan province

Table 5
Indicator number and province name for customer j.

Customer indicator number i Customer j Customer indicator number i Customer j

1 East Azerbaijan 17 Fars

2 West Azerbaijan 18 Qazvin
3 Ardabil 19 Qom
4 Isfahan 20 Kurdestan
5 Alborz 21 Kerman
6 Ilam 22 Kermanshah
7 Bushehr 23 Kohgiluyeh and Boyer-Ahmad
8 Tehran 24 Golestan
9 Chahar Mahaal and Bakhtiari 25 Gilan
10 South Khorasan 26 Lorestan
11 Razavi Khorasan 27 Mazandaran
12 North Khorasan 28 Markazi
13 Khuzestan 29 Hormozgan
14 Zanjan 30 Hamadan
15 Semnan 31 Yazd
16 Sistan and Baluchistan
12 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628

Table 6
Optimal amount of objective functions.

Objective Optimal amount

Economic ($) 20417400000

Environmental (gram/kilometer) 23030400000
Social (person) 1128999000

objective function of the goal programming model is also incre-

mental. Changes to the parameter of the cost of buying a vehicle
make a slight effect on the objective function of the goal pro-
gramming model and there is less sensitivity to this parameter. It is
also seen that the model is more sensitive to changes in the cost of
warehouse construction.

5.3. Sensitivity analysis of the parameter of the number of

warehouses Fig. 6. The effect of the cost of vehicle purchase, transportation and warehouse con-
struction on the objective function.

In this section, the sensitivity of the objective function of the

goal programming model and the percentage of deviations is As it is shown in Fig. 7, if the number of constructed warehouses
measured relative to the parameter of the number of warehouses. increases, the value of the objective function of the goal
The results of this measure are presented in Table 8 and Fig. 7.

Table 7
Effect of parameter of cost of shipping on objective function of goal programming model.

Vehicle purchase cost Objective function of goal programming model Economic objective function Environmental objective function Social objective function

Percentage deviation

50% reduction 3.319 0.537 1.781 1.000

40% reduction 3.497 0.716 1.781 1.000
30% reduction 3.676 0.894 1.781 1.000
20% reduction 3.854 1.073 1.781 1.000
10% reduction 4.033 1.251 1.781 1.000
Normal status e 49611700000 64052000000 286
4.211 1.430 1.781 1.000
10% increase 4.390 1.608 1.781 1.000
20% increase e 36732400000 80765000000 60
4.540 1.033 2.507 1.000
30% increase e 28238600000 92553100000 126
4.632 0.613 3.019 1.000
40% increase e 25326200000 96885400000 161
4.700 0.494 3.207 1.000
50% increase e 23157100000 100311000000 193
4.757 0.401 3.356 1.000

Fig. 5. Effect of parameter of cost of shipping on objective function.

 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628 13

Table 8
The effect of the parameter of the number of warehouses on objective function of goal programming model.

Number of warehouses Objective function goal Economic objective Environmental objective Social objective Provinces selected by model for
constructed programming model function function function warehouse construction

Percentage deviation

1 e 46411700000 64052000000 209 Tehran

4.054 1.273 1.781 1.000
2 e 49611700000 64052000000 286 Tehran - Fars
4.211 1.430 1.781 1.000
3 e 53111700000 64052000000 370 Tehran - Qom - Fars
4.382 1.601 1.781 1.000
4 e 59111700000 64052000000 514 Tehran - Qom - Fars - Razavi Khorasan
4.676 1.895 1.781 1.000

Fig. 7. The effect of the parameter of the number of warehouses on the objective Fig. 8. The effect of the parameter of demand on the objective function.
function.
5.4. Sensitivity analysis of the parameter of demand

programming model and the percentage of the deviation of the
economic objective function is increased and social and environ-
mental objective functions are constant. However, these changes
do not occur in the deviation percentage of environmental objec-
tive functions, which seems to be due to the lack of change in the
model’s response and model’s decision making.
In this section, sensitivity of the objective function of the goal
programming model and percentage of deviations is measured
relative to the demand parameter. The results of this measure are
presented in Table 9 and Fig. 8.
Fig. 8 shows variations of the objective function of the goal
programming model and the percentage of the deviation relative to

Table 9
The effect of the parameter of demand on the objective function of goal programming model.

Demand Objective function goal programming model Economic objective function Environmental objective function Social objective function

Percentage deviation

50% reduction e 30405900000 32026000000 242

1.880 0.489 0.391 1.000
40% reduction e 34247000000 38431200000 251
2.417 0.677 0.740 1.000
30% reduction e 38088200000 44836400000 260
2.895 0.865 1.030 1.000
20% reduction e 41929400000 51241600000 269
3.279 1.054 1.225 1.000
10% reduction e 45770500000 57646800000 277
3.745 1.242 1.503 1.000
Normal status e 49611700000 64052000000 286
4.211 1.430 1.781 1.000
10% increase e 53452900000 70457200000 295
4.677 1.618 2.059 1.000
20% increase e 57294100000 76862400000 304
5.144 1.806 2.337 1.000
30% increase e 61135200000 83267600000 313
5.610 1.994 2.616 1.000
40% increase e 64976400000 89672800000 322
6.076 2.182 2.894 1.000
50% increase e 68817600000 96078000000 331
6.542 2.371 3.172 1.000
14 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628

Table 10
Weighing the objective functions and its effect on the percentage of deviations and the objective function of the goal programming model.

Status Weight of objective functions Objective function goal programming Economic objective Environmental objective Social objective
model function function function

Percentage deviation

1 wc ¼ 0:75we ¼ 0:05ws ¼ e 20736900000 105140000000 266

0:20 0.390 0.016 3.565 1.000
2 wc ¼ 0:1we ¼ 0:3ws ¼ 0:6 e 49611700000 64052000000 286
1.277 1.430 1.781 1.000
3 wc ¼ 0:1we ¼ 0:6ws ¼ 0:3 e 49611700000 64052000000 286
1.512 1.430 1.781 1.000
4 wc ¼ 0:3we ¼ 0:1ws ¼ 0:6 e 20805400000 104873000000 256
0.961 0.019 3.554 1.000
5 wc ¼ 0:3we ¼ 0:6ws ¼ 0:1 e 49611700000 64052000000 286
1.598 1.430 1.781 1.000
6 wc ¼ 0:6we ¼ 0:1ws ¼ 0:3 e 20739300000 105114000000 262
0.666 0.016 3.564 1.000
7 wc ¼ 0:6we ¼ 0:3ws ¼ 0:1 e 21036800000 104282000000 244
1.177 0.030 3.528 1.000
8 wc ¼ 0:8we ¼ 0:1ws ¼ 0:1 e 20739300000 105114000000 262
0.469 0.016 3.564 1.000
9 wc ¼ 0:1we ¼ 0:8ws ¼ 0:1 e 49611700000 64052000000 286
1.668 1.430 1.781 1.000
10 wc ¼ 0:1we ¼ 0:1ws ¼ 0:8 e 49611700000 64052000000 286
1.121 1.430 1.781 1.000

the parameter of demand. By increasing the parameter of demand,

the value of the objective function of the goal programming model
and deviation percentage of the economic and environmental
objective functions are increased.
In Fig. 8, Increasing demand will require more transportation to
meet demand, leading to higher costs and higher gas emissions.
The slope of the graphs also shows that environmental issues need
more management and control. As a result, vehicles with less CO2
emissions can be used.
5.5. Sensitivity analysis after weighting the objective functions
In the previous section, the objective function of the goal pro-
gramming model is presented in the form (64):
MinGP ¼ dþ þ þ
c þ de þ ds
In this case, the objective functions have the same value. How-
ever, if the functions have different values, then the objective
functions of the model can be represented as (65). If wc ¼ we ¼
ws , then the relations (64) and (65) are identical.
MinGP ¼ wc :dþ þ þ
c þ we :de þ ws :ds (65)
In Table 10, different weights are considered to sensitivity
analysis of the objective functions. The numerical values of 0.8,
0.75, and 0.6 represent significant importance of objective func-
tions, the numerical values of 0.3 and 0.2 show moderate impor-
tance of objective functions and the numerical value of 0.1
represents the low importance of objective functions. The analysis
of Fig. 9 and Table 10 indicates that with the increase in the weight
of the economic objective function and reduction in weight of the
social objective function, the amount of objective function of the
goal programming model, the percentage of the deviation of the
economic objective function and the value of the social objective
function decrease and the percentage of the deviation of the
environmental objective function increases.
(64)
Fig. 9 is presented for comparing the mode no. 2 with the mode
no. 7 on weighting objective functions. Fig. 10 is presented for
comparing the mode 3 with the mode 5 on weighting objective
functions.
Comparison modes 3 and 5 in Fig. 10 and Table 10 indicate that

Fig. 9. Comparing the modes 2 and 7 in weighting the objective functions and its effect on the percentage of deviations and the objective function of the goal programming model.
 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628 15

Fig. 10. Comparing the modes 3 and 5 in weighting the objective functions and its effect on the percentage of deviations and the objective function of the goal programming model.

with the increase in weight of the economic objective function and
reduction in the weight of the social objective function, the amount
of objective function of the goal programming model is increased.
However, it seems that because the model response is not changed,
changes are not reflected in the deviation percentage of economic,
environmental, and social objective functions.
Fig. 11 is presented for comparison modes 4 and 6 on weighting
objective functions.
Comparison modes 4 and 6 in Fig. 11 and Table 10 indicate that
with the increase in the weight of the economic objective function
and the reduction in the weight of the social objective function, the
amount of objective function of the goal programming model, the
percentage of the deviation of the economic objective function is
decreased, the value of the social objective function is constant and
percentage of the deviation of the environmental objective function
increases.
6. Conclusions and future research
In this research, a mix-integer programming model was devel-
oped for optimizing economic, environmental and social objectives,
which these goals include minimizing transportation costs, pur-
chasing a vehicle and building a warehouse, minimizing the
amount of carbon dioxide released by transport vehicles and
building warehouses and maximizing the number of job opportu-
nities. The multi-objective model was solved using the goal
programming technique and GAMS software. In the following,
sensitivity analysis was performed on the main parameters of the
model (number of warehouses, demand, vehicle purchase costs,
transportation and warehouse construction) and the change in the
objective function and the percentage of the deviations of the
economic, environmental, and social objective functions were
measured relative to those parameters. Finally, each of the objective
functions was weighed according to a consultation with the logis-
tics director of Digikala company, as well as the importance of
economic, environmental and social considerations, and the results
and sensitivity analysis were presented in the form of tables and
charts. Computational results are reported based on real-world
data analyses. The used instance was consisted of four suppliers,
three warehouses, and 31 provinces, which meant that the integer
linear programming could be solved optimally using CPLEX in a
short CPU time. Solving the proposed model results in the selection
of optimal distribution channel of Digikala products (including
steamer, suitcase, copper dish and washing machine), the number
of vehicles required, and the number of job opportunities created
by the product transportation. The consequences of solving the
model are concluded as:

If the cost of shipping increases by 10% in the next year, it will not
have much effect on the total cost of the system, but if this cost
increases by 50% in the next five years, the cost the system will
dramatically increase. Thus, managing this cost is very significant.

Fig. 11. Comparing the modes 4 and 6 in weighting the objective functions and its effect on the percentage of deviations and the objective function of the goal programming model.
16 A. Vafaei et al. / Journal of Cleaner Production 251 (2020) 119628

The variation in the cost of a vehicle’s purchase cost has little
effect on the objective function of the goal programming model,
and there is less sensitivity to this parameter. This can
encourage management to invest in the purchase of a vehicle. As
a result, when demand increases, more vehicles are purchased
to accelerate the delivery and customer satisfaction.

If the Digikala company cares for economic considerations, the
distribution of steamer product for 29 provinces by the third-
party logistics company (shipping and express mail) and for
the provinces of Tehran and Alborz by the distribution company
t (pride vans), the distribution of suitcase product For 31 prov-
inces, by the third-party logistics company e (shipping and ex-
press mail), copper dish product distribution for 30 provinces is
provided by the third-party logistics company (shipping and
express mail) and Qazvin province by the retailer distribution
team t (pride van) and the distribution of the washing machine
product for 31 provinces is done by the retailer’s distribution
team t (pride van).

If the Digikala company is concerned with environmental or
social considerations, distribution of products for 31 provinces
will be done by the retailer distribution team t (pride van).

Digikala company main motivation for using this model was to
reduce system costs. The distribution costs are reduced when
the product reaches the customer directly from the supplier by
third-party logistics and the retailer distribution team.
In the future works, it can be occupying to model the uncer-
tainty of real cases. Another extension could be the inclusion of
more real-life constraints like capacity limitations of warehouses
and transportation time. In this study, we examined non-
deteriorating items. Formulating a model that considers fresh
food or deteriorating items would also be beneficial.
CRediT author Statement
Arezoo Vafaei: Software, Validation, Investigation, Formal
analysis, Resources, Data Curation, Writing - Original Draft
Preparation.
Saeed Yaghoubi: Conceptualization, Methodology, Formal
analysis, Writing- Reviewing and Editing, Visualization, Supervi-
sion, Project administration.
Javad Tajik: Software, Validation, Formal analysis, Data Cura-
tion, Writing- Reviewing and Editing.
Farnaz Barzinpour: Formal analysis, Methodology,
Visualization.
Declaration of competing interest
The authors declare that they have no known competing
financial interests or personal relationships that could have
appeared to influence the work reported in this paper.
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