Optimising multi-objective location decisions in a supply chain using an AHP-enhanced goal-programming model

Goal Programming (GP) is combined with the Analytic Hierarchy Process (AHP) to determine optimal plant and distribution centre locations in a supply chain with special focus on the operational efficiencies of the Distribution Centres (DCs). The combined GP-AHP model incorporates multiple conflicting objectives as demanded by the decision process. The AHP is used to handle the non-cost criteria, aspiration levels and to find the relative weights of multiple objectives in GP. We illustrate the combined approach with an example to highlight its usage in solving other similar complex multi-objective decision problems as well.

[1]  Ben Hua,et al.  Supply chain optimization of continuous process industries with sustainability considerations , 2000 .

[2]  Efraim Turban,et al.  Fundamentals of Management Science , 1977 .

[3]  H. Joseph Wen,et al.  A conceptual framework for evaluation of information technology investments , 2002, Int. J. Technol. Manag..

[4]  Saul I. Gass,et al.  OR Practice - The Army Manpower Long-Range Planning System , 1988, Oper. Res..

[5]  Felix T.S. Chan,et al.  Decision-making approach for the distribution centre location problem in a supply chain network using the fuzzy-based hierarchical concept , 2007 .

[6]  Barry Stannard,et al.  Application of Analytic Hierarchy Process in Multi-Objective Mixed Integer Programming for airlift Capacity Planning , 2006, Asia Pac. J. Oper. Res..

[7]  Markku Tuominen,et al.  An analytic approach to supply chain development , 2001 .

[8]  Jukka Korpela,et al.  A customer oriented approach to warehouse network evaluation and design , 1999 .

[9]  W. Chung,et al.  A study of outsourcing relationship in strategic partnership for production in China , 2007 .

[10]  Barry A. Stannard.  A capacity planning model for Canadian military airlift requests , 1993 .

[11]  Kenneth J. Petersen,et al.  Getting on track to better global sourcing , 2008 .

[12]  Maurizio Bevilacqua,et al.  A combined goal programming - AHP approach to maintenance selection problem , 2006, Reliab. Eng. Syst. Saf..

[13]  R. Kodali,et al.  Development of decision framework for warehouse decisions in supply chain network , 2008 .

[14]  Saul I. Gass.  A Process for Determining Priorities and Weights for Large-Scale Linear Goal Programmes , 1986 .

[15]  Masood A. Badri,et al.  A combined AHP}GP model for qualitycontrol sy stems , 2001 .

[16]  Allan D. Shocker,et al.  Estimating the weights for multiple attributes in a composite criterion using pairwise judgments , 1973 .

[17]  S. Kumanan,et al.  Optimisation of supply chain logistics network using random search techniques , 2007 .

[18]  Marc J. Schniederjans,et al.  Goal Programming: Methodology and Applications , 2010 .

[19]  G. Anandalingam,et al.  Sustainable urban energy-environment management with multiple objectives , 1996 .

[20]  Thomas L. Saaty,et al.  Multicriteria Decision Making: The Analytic Hierarchy Process: Planning, Priority Setting, Resource Allocation , 1990 .

[21]  N. K. Kwak,et al.  An integrated mathematical programming model for offset planning , 1998, Comput. Oper. Res..

[22]  T. Saaty,et al.  The Analytic Hierarchy Process , 1985 .

[23]  Trevor S. Hale,et al.  A framework for an integrated distribution system optimisation model , 2008 .

[24]  Ge Wang,et al.  Product-driven supply chain selection using integrated multi-criteria decision-making methodology , 2004 .

[25]  Zilla Sinuany-Stern.  A Network Optimization Model for Budget Allocation in a Multi-Campus University , 1984 .

[26]  N. K. Kwak,et al.  Information resource planning for a health-care system using an AHP-based goal programming method , 1999, J. Oper. Res. Soc..

[27]  Ami Arbel.  A weighted-gradient approach to multi-objective linear programming problems using the analytic hierarchy process , 1993 .

[28]  Masood A. Badri,et al.  Combining the analytic hierarchy process and goal programming for global facility location-allocation problem , 1999 .

[29]  Mustafa Yurdakul,et al.  Selection of computer-integrated manufacturing technologies using a combined analytic hierarchy process and goal programming model , 2004 .

[30]  Mauro Gamberi,et al.  An integrated approach to the design and management of a supply chain system , 2008 .

[31]  Saul I. Gass.  The setting of weights in linear goal-programming problems , 1987, Comput. Oper. Res..

[32]  P. Baker.  Aligning Distribution Center Operations to Supply Chain Strategy , 2004 .

[33]  M. Schniederjans,et al.  Using the analytic hierarchy process and multi-objective programming for the selection of cost drivers in activity-based costing , 1997, Eur. J. Oper. Res..