An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection
Supplier selection is a multi-criteria problem which includes both tangible and intangible factors. In these problems if suppliers have capacity or other different constraints two problems will exist: which suppliers are the best and how much should be purchased from each selected supplier? In this...
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01.08.2008
Elsevier Elsevier Science Publishers Pergamon Press Inc |
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| Abstract | Supplier selection is a multi-criteria problem which includes both tangible and intangible factors. In these problems if suppliers have capacity or other different constraints two problems will exist: which suppliers are the best and how much should be purchased from each selected supplier? In this paper an integrated approach of analytic network process (ANP) and multi-objective mixed integer linear programming (MOMILP) is proposed. This integrated approach considers both tangible and intangible factors in choosing the best suppliers and defines the optimum quantities among selected suppliers to maximize the total value of purchasing (TVP), and to minimize the total cost and total defect rate and to balance the total cost among periods. The priorities are calculated for each supplier by using ANP. Four different plastic molding firms working with a refrigerator plant are evaluated according to 14 criteria that are involved in the four clusters: benefits, opportunities, costs and risks (BOCR). The priorities of suppliers will also be used as the parameters of the first objective function. This multi-objective and multi-period real-life problem is solved by using previous techniques and a reservation level driven Tchebycheff procedure (RLTP). Finally the most preferred nondominated solutions are determined by considering the decision maker's (DM's) preferences and the results obtained by these techniques are compared. |
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| AbstractList | Supplier selection is a multi-criteria problem which includes both tangible and intangible factors. In these problems if suppliers have capacity or other different constraints two problems will exist: which suppliers are the best and how much should be purchased from each selected supplier? In this paper an integrated approach of analytic network process (ANP) and multi-objective mixed integer linear programming (MOMILP) is proposed. This integrated approach considers both tangible and intangible factors in choosing the best suppliers and defines the optimum quantities among selected suppliers to maximize the total value of purchasing (TVP), and to minimize the total cost and total defect rate and to balance the total cost among periods. The priorities are calculated for each supplier by using ANP. Four different plastic molding firms working with a refrigerator plant are evaluated according to 14 criteria that are involved in the four clusters: benefits, opportunities, costs and risks (BOCR). The priorities of suppliers will also be used as the parameters of the first objective function. This multi-objective and multi-period real-life problem is solved by using previous techniques and a reservation level driven Tchebycheff procedure (RLTP). Finally the most preferred nondominated solutions are determined by considering the decision maker's (DM's) preferences and the results obtained by these techniques are compared. [PUBLICATION ABSTRACT] Supplier selection is a multi-criteria problem which includes both tangible and intangible factors. In these problems if suppliers have capacity or other different constraints two problems will exist: which suppliers are the best and how much should be purchased from each selected supplier? In this paper an integrated approach of analytic network process (ANP) and multi-objective mixed integer linear programming (MOMILP) is proposed. This integrated approach considers both tangible and intangible factors in choosing the best suppliers and defines the optimum quantities among selected suppliers to maximize the total value of purchasing (TVP), and to minimize the total cost and total defect rate and to balance the total cost among periods. The priorities are calculated for each supplier by using ANP. Four different plastic molding firms working with a refrigerator plant are evaluated according to 14 criteria that are involved in the four clusters: benefits, opportunities, costs and risks (BOCR). The priorities of suppliers will also be used as the parameters of the first objective function. This multi-objective and multi-period real-life problem is solved by using previous techniques and a reservation level driven Tchebycheff procedure (RLTP). Finally the most preferred nondominated solutions are determined by considering the decision maker's (DM's) preferences and the results obtained by these techniques are compared. Supplier selection is a multi-criteria problem which includes both tangible and intangible factors. In these problems if suppliers have capacity or other different constraints two problems will exist: which suppliers are the best and how much should be purchased from each selected supplier? In this paper an integrated approach of analytic network process (ANP) and multiobjective mixed integer linear programming (MOMILP) is proposed. This integrated approach considers both tangible and intangible factors in choosing the best suppliers and defines the optimum quantities among selected suppliers to maximize the total value of purchasing (TVP), and to minimize the total cost and total defect rate and to balance the total cost among periods. The priorities are calculated for each supplier by using ANP. Four different plastic molding firms working with a refrigerator plant are evaluated according to 14 criteria that are involved in the four clusters: benefits, opportunities, costs and risks (BOCR). The priorities of suppliers will also be used as the parameters of the first objective function. This multi-objective and multiperiod real-life problem is solved by using previous techniques and a reservation level driven Tchebycheff procedure (RLTP). Finally the most preferred nondominated solutions are determined by considering the decision maker's (DM's) preferences and the results obtained by these techniques are compared. Supplier selection is a multi-criteria problem which includes both tangible and intangible factors. In these problems if suppliers have capacity or other different constraints two problems will exist: which suppliers are the best and how much should be purchased from each selected supplier? In this paper an integrated approach of analytic network process (ANP) and multiobjective mixed integer linear programming (MOMILP) is proposed. This integrated approach considers both tangible and intangible factors in choosing the best suppliers and defines the optimum quantities among selected suppliers to maximize the total value of purchasing (TVP), and to minimize the total cost and total defect rate and to balance the total cost among periods. The priorities are calculated for each supplier by using ANP. Four different plastic molding firms working with a refrigerator plant are evaluated according to 14 criteria that are involved in the four clusters: benefits, opportunities, costs and risks (BOCR). The priorities of suppliers will also be used as the parameters of the first objective function. This multi-objective and multiperiod real-life problem is solved by using previous techniques and a reservation level driven Tchebycheff procedure (RLTP). Finally the most preferred nondominated solutions are determined by considering the decision maker's (DM's) preferences and the results obtained by these techniques are compared. Keywords: Analytic network process; Multi-objective mixed integer linear programming; Reservation level driven Tchebycheff procedure; Multi-criteria decision making; Supplier selection; Multi-period lot-sizing |
| Audience | Trade Academic |
| Author | Ustun, Ozden Demı˙rtas, Ezgi Aktar |
| Author_xml | – sequence: 1 givenname: Ozden surname: Ustun fullname: Ustun, Ozden email: oustun@ogu.edu.tr – sequence: 2 givenname: Ezgi Aktar surname: Demı˙rtas fullname: Demı˙rtas, Ezgi Aktar email: eaktar@ogu.edu.tr |
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| Keywords | Reservation level driven Tchebycheff procedure Analytic network process Supplier selection Multi-objective mixed integer linear programming Multi-criteria decision making Multi-period lot-sizing Multicriteria analysis Multiobjective programming Lot sizing Optimization Multiple decision Inelasticity Purchasing Network Defect Supplier Purchases Molding Decision support system Decision making Priority Cluster Mixed integer programming Refrigerator Optimum Preference Capacity constraint Objective function Plastics |
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| SubjectTerms | Analysis Analytic network process Analytic network process Multi-objective mixed integer linear programming Reservation level driven Tchebycheff procedure Multi-criteria decision making Supplier selection Multi-period lot-sizing Applied sciences Case studies Decision theory. Utility theory Evaluation Exact sciences and technology Industrial suppliers Integrated approach Inventory control, production control. Distribution Linear programming Management Mathematical programming Multi-criteria decision making Multi-objective mixed integer linear programming Multi-period lot-sizing Multiple criteria decision making Operational research and scientific management Operational research. Management science Reservation level driven Tchebycheff procedure Selection Studies Supplier selection Suppliers |
| Title | An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection |
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