Analytic hierarchy process-based approach for selecting a Pareto-optimal solution of a multi-objective, multi-site supply-chain planning problem

ABSTRACT

The current manufacturing environment has changed from traditional single-plant to multi-site supply chain where multiple plants are serving customer demands. In this article, a tactical multi-objective, multi-period, multi-product, multi-site supply-chain planning problem is proposed. A corresponding optimization model aiming to simultaneously minimize the total cost, maximize product quality and maximize the customer satisfaction demand level is developed. The proposed solution approach yields to a front of Pareto-optimal solutions that represents the trade-offs among the different objectives. Subsequently, the analytic hierarchy process method is applied to select the best Pareto-optimal solution according to the preferences of the decision maker. The robustness of the solutions and the proposed approach are discussed based on a sensitivity analysis and an application to a real case from the textile and apparel industry.

KEYWORDS:

• Multi-site supply chain
• multi-objective optimization
• Pareto-optimal solutions
• analytic hierarchy process (AHP)

Acknowledgement

The authors are grateful to LINDO Systems, Inc. for providing them with a free educational research licence of the extended version of LINGO 14.0 software package.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This research is carried out in the context of a thesisMOBIDOC funded by the European Union under the programme PASRI.