Optimizing government costs of supporting periodical publications through robust supply chain network redesign with the consideration of social welfare

Emadabadi, A.; Teimoury, E.; Pourmohammadi, F.

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Uncertain Supply Chain Management

ISSN 2291-6830 (Online) - ISSN 2291-6822 (Print) Quarterly Publication Volume 8 Issue 2 pp. 389-402 , 2020

Optimizing government costs of supporting periodical publications through robust supply chain network redesign with the consideration of social welfare Pages 389-402 Download PDF

Authors: Ali Asghar Emadabadi, Ebrahim Teimoury, Fahimeh Pourmohammadi

DOI: 10.5267/j.uscm.2019.11.001

Keywords: Social welfare, Periodical publication, Subsidy payment, Supply chain network redesign, Magazines’ subscription

Abstract: In this paper, two policies are considered for supporting periodical publications by the government: direct subsidy payment to these publications and opening new facilities which could help with integration and reduce delivery costs. For this aim, a mixed-integer linear mathematical model is presented that minimizes total costs while considering social welfare. The robust programming approach developed by Bertsimas and Sim is used to cope with uncertain parameters. In order to validate the model and investigate its applicability and advantages, the magazines’ subscriptions in Tehran is selected as a case study. The output of the model demonstrates that when social welfare is not considered, the risk-averted supply chain will focus on low-cost areas of the chain, which are the central areas of Tehran. However, when minimum social welfare is assured, the supply chain pays attention to all areas. Also, the government should increase supply capacity by opening new facilities, and it should differentiate between areas when paying direct subsidies.

How to cite this paper

 Emadabadi, A., Teimoury, E & Pourmohammadi, F. (2020). Optimizing government costs of supporting periodical publications through robust supply chain network redesign with the consideration of social welfare.Uncertain Supply Chain Management, 8(2), 389-402.

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