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Target-Oriented Compromised Sales and Profit Approach for Production and Distribution Planning in a Supply Chain
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Author(s): Supanat Sukviboon (Sirindhorn International Institute of Technology, Thammasat University, Thailand)and Pisal Yenradee (Sirindhorn International Institute of Technology, Thammasat University, Thailand)
Copyright: 2023
Volume: 14
Issue: 1
Pages: 23
Source title:
International Journal of Knowledge and Systems Science (IJKSS)
Editor(s)-in-Chief: Van Nam Huynh (JAIST, Japan)
DOI: 10.4018/IJKSS.322302
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Abstract
This paper aims to determine optimal aggregate production and distribution plans in a supply chain system that simultaneously achieve two business targets of total profit and total sales, with uncertain parameters, e.g., production rate during regular time and overtime, inventory holding costs for a manufacturer and distribution centers, and transportation cost. A fuzzy multi-objective linear programming (FMOLP) model is developed to represent the planning problem. The proposed method that minimizes maximum deviation from satisfaction targets of fuzzy profits and sales is more effective, compared with the method that maximizes minimum satisfaction of fuzzy profits and sale, to determine various compromised solutions, which are Pareto-optimal, and to allow a planner to select the most desirable solution based on his/her opinion. This paper has made a significant contribution since it is the first one that proposes the FMOLP approach to determine compromised solutions with two target-based objectives of simultaneously achieving total fuzzy profit targets and total sales target.
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