A multi-objective optimisation approach for order management: incorporating activity-based costing in supply chains

Most of the supply chain order management decision making models proposed in the literature are based mainly on the material flow and capacity constraints without any consideration to the profitability factor. In this paper, we develop a multi-objective mixed-integer programming (MIP) model which co...

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Veröffentlicht in:International journal of production research Jg. 48; H. 17; S. 5007 - 5020
Hauptverfasser: Khataie, Amirhossein, Defersha, Fantahun M., Bulgak, Akif Asil
Format: Journal Article
Sprache:Englisch
Veröffentlicht: Abingdon Taylor & Francis Group 01.09.2010
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Schlagworte:
Acceptance
Activity based costing
Applied sciences
Bestellung
Decision making
Decision making models
Decision theory. Utility theory
Exact sciences and technology
Ganzzahlige Optimierung
goal programming
Integer programming
Inventory control, production control. Distribution
Lieferkette
Logistics
Management
Management decisions
Mathematical models
Mathematical programming
mixed-integer programming
Operational research and scientific management
Operational research. Management science
Optimization
Optimization techniques
Profitability
Programming
Prozesskostenrechnung
Studies
Supply chain management
Supply chains
activity-based costing
Profitability
Decision support system
Material flow
Decision making
Multiobjective programming
Partial ordering
Mixed integer programming
Order picking
Modeling
Goal programming
Production management
supply chain management
mixed-integer programming
Capacity constraint
Cost analysis
Manufacturing cost
Logistics
ISSN:0020-7543, 1366-588X
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Beschreibung
Zusammenfassung:Most of the supply chain order management decision making models proposed in the literature are based mainly on the material flow and capacity constraints without any consideration to the profitability factor. In this paper, we develop a multi-objective mixed-integer programming (MIP) model which considers profitability in order to effectively manage order acceptance decisions in supply chains, subject to capacity constraints by using activity-based costing (ABC). While there are a numbers of decision-making models in literature integrating ABC in supply chains, this study expands the previous models with a more customer-oriented approach. The proposed model fulfils a desirable amount of orders completely and accepts selective number of orders partially with an objective of minimising the amount of residual capacity and increasing the profitability.
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ISSN:0020-7543
1366-588X
DOI:10.1080/00207540903095442