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Bi-Objective Supply Chain Optimization With Supplier Selection
Abstract
Supplier selection is one of the most important decisions within SCM since suppliers have emerged as value adding partners in industrial relationship. In the current study, supplier selection on the basis of information pertaining to quality and delivery time is explained. The cost aspects are taken care while coordinating procurement and distribution in the echelons. The deteriorating nature of the product creates imprecision in demand and fuzziness in different stages of the coordination. A fuzzy bi-objective mixed integer non-linear model is developed, where the first objective minimizes the combined cost of holding, processing, and transportation in all the echelons and the second objective maximizes combination of lot acceptance percentage and on-time delivery percentage. The solution process converts the model into crisp form and solves using a fuzzy goal programming technique.
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