Strategic global supply chain network design – how decision analysis combining MILP and AHP on a Pareto front can improve decision-making

References

• Asmussen, Jesper Normann, Jesper Kristensen, Kenn Steger-Jensen, and Brian Vejrum Wæhrens. 2018. “When to Integrate Strategic and Tactical Decisions? Introduction of an Asset/Inventory Ratio Guiding Fit for Purpose Production Planning.” International Journal of Physical Distribution & Logistics Management 48 (5): 545–568.
   Web of Science ®Google Scholar
• Asmussen, Jesper Normann, Jesper Kristensen, and Brian Vejrum Wæhrens. 2018. “Cost Estimation Accuracy in Supply Chain Design.” International Journal of Physical Distribution & Logistics Management 48 (10): 995–1019.
   Web of Science ®Google Scholar
• Badri, Masood A. 1999. “Combining the Analytic Hierarchy Process and Goal Programming for Global Facility Location-Allocation Problem.” International Journal of Production Economics 62 (3): 237–248.
   Web of Science ®Google Scholar
• Bhattacharya, Arijit, Prasanta Kumar Dey, and William Ho. 2015. “Green Manufacturing Supply Chain Design and Operations Decision Support.” International Journal of Production Research 53 (21): 6339–6343.
   Web of Science ®Google Scholar
• Brusset, Xavier, and Jean-Louis Bertrand. 2018. “Hedging Weather Risk and Coordinating Supply Chains.” Journal of Operations Management 64: 41–52.
   Web of Science ®Google Scholar
• Chan, Felix T. S., N. Kumar, M. K. Tiwari, H. C. W. Lau, and K. L. Choy. 2008. “Global Supplier Selection: A Fuzzy-AHP Approach.” International Journal of Production Research 46 (14): 3825–3857.
   Web of Science ®Google Scholar
• Chopra, Sunil, and Peter Meindl. 2016. Supply Chain Management – Strategy, Planning and Operation. 6th ed. Boston: Pearson.
   Google Scholar
• Christopher, Martin. 2000. “The Agile Supply Chain: Competing in Volatile Markets.” Industrial Marketing Management 29 (1): 37–44.
   Web of Science ®Google Scholar
• Cohen, Morris A., and Hau L. Lee. 2020. “Designing the Right Global Supply Chain Network.” Manufacturing & Service Operations Management 22 (1): 15–24.
   Web of Science ®Google Scholar
• Courtney, James F. 2007. “Reflections on Decision Support.” DSSResources.COM, May 21. Accessed May 7, 2020. http://dssresources.com/reflections/courtney/courtney05212007.html.
   Google Scholar
• Denyer, David, David Tranfield, and Joan Ernst van Aken. 2008. “Developing Design Propositions Through Research Synthesis.” Organization Studies 29 (3): 393–413.
   Web of Science ®Google Scholar
• Dolgui, Alexandre, Dmitry Ivanov, and Boris Sokolov. 2018. “Ripple Effect in the Supply Chain: An Analysis and Recent Literature.” International Journal of Production Research 56 (1-2): 414–430.
   Web of Science ®Google Scholar
• Dyer, Robert F., and Ernest H. Forman. 1992. “Group Decision Support with the Analytic Hierarchy Process.” Decision Support Systems 8 (2): 99–124.
   Web of Science ®Google Scholar
• Flynn, B. B., and E. J. Flynn. 2005. “Synergies between Supply Chain Management and Quality Management: Emerging Implications.” International Journal of Production Research 43 (16): 3421–3436.
   Web of Science ®Google Scholar
• Ghodsypour, S. H., and C. O’Brien. 1998. “A Decision Support System for Supplier Selection Using an Integrated Analytic Hierarchy Process and Linear Programming.” International Journal of Production Economics 56-57: 199–212.
   Web of Science ®Google Scholar
• Gyorey, Trish, Matt Jochim, and Sabina Norton. 2010. “The Challenges Ahead for Supply Chains: McKinsey Global Survey Results.” McKinsey & Company, November 1. Accessed July 29, 2020. https://www.mckinsey.com/business-functions/operations/our-insights/the-challenges-ahead-for-supply-chains-mckinsey-global-survey-results.
   Google Scholar
• Hansen, Carsten, Carlos Mena, and Heather Skipworth. 2017. “Exploring Political Risk in Offshoring Engagements.” International Journal of Production Research 55 (7): 2051–2067.
   Web of Science ®Google Scholar
• Holmström, Jan, Mikko Ketokivi, and Ari-Pekka Hameri. 2009. “Bridging Practice and Theory: A Design Science Approach.” Decision Sciences 40 (1): 65–87.
   Web of Science ®Google Scholar
• Irawan, Chandra Ade, Negar Akbari, Dylan F. Jones, and David Menachof. 2018. “A Combined Supply Chain Optimisation Model for the Installation Phase of Offshore Wind Projects.” International Journal of Production Research 56 (3): 1189–1207.
   Web of Science ®Google Scholar
• Ivanov, Dmitry, Alexandre Dolgui, and Boris Sokolov. 2019. Handbook of Ripple Effects in the Supply Chain. New York: Springer.
   Google Scholar
• Ivanov, Dmitry, Richard Hartl, Alexandre Dolgui, Alexander Pavlov, and Boris Sokolov. 2015. “Integration of Aggregate Distribution and Dynamic Transportation Planning in a Supply Chain with Capacity Disruptions and the Ripple Effect Consideration.” International Journal of Production Research 53 (23): 6963–6979.
   Web of Science ®Google Scholar
• Kinkel, Steffen, and Spomenka Maloca. 2009. “Drivers and Antecedents of Manufacturing Offshoring and Backshoring – A German Perspective.” Journal of Purchasing and Supply Management 15 (3): 154–165.
   Web of Science ®Google Scholar
• Kinra, Aseem, Kim S. Hald, Raghava R. Mukkamala, and Ravi Vatrapu. 2020. “An Unstructured Textual Big Data Analytics Approach for Country Logistics Performance Assessment in Global Supply Chains.” International Journal of Operations and Production Management 40 (4): 439–458. doi:10.1108/IJOPM-07-2019-0544.
   Web of Science ®Google Scholar
• Kinra, Aseem, and Herbert Kotzab. 2008a. “A Macro-Institutional Perspective on Supply Chain Environmental Complexity.” International Journal of Production Economics 115 (2): 283–295.
   Web of Science ®Google Scholar
• Kinra, Aseem, and Herbert Kotzab. 2008b. “Understanding and Measuring Macro-Institutional Complexity of Logistics Systems Environment.” Journal of Business Logistics 29 (1): 327–346.
   Web of Science ®Google Scholar
• Klose, Andreas, and Andreas Drexl. 2005. “Facility Location Models for Distribution System Design.” European Journal of Operational Research 162 (1): 4–29.
   Web of Science ®Google Scholar
• Korpela, Jukka, Antti Lehmusvaara, and Markku Tuominen. 2001. “Customer Service Based Design of the Supply Chain.” International Journal of Production Economics 69 (2): 193–204.
   Web of Science ®Google Scholar
• Lampón, Jesús F., Santiago Lago-Peñas, and Javier González-Benito. 2015. “International Relocation and Production Geography in the European Automobile Components Sector: The Case of Spain.” International Journal of Production Research 53 (5): 1409–1424.
   Web of Science ®Google Scholar
• Land, Frank F. 2008. “Reflections on Decision Support.” DSSResources.COM, March 16. Accessed May 7, 2020. http://dssresources.com/reflections/land/land03162008.html.
   Google Scholar
• Lund, Susan, James Manyika, Jonathan Woetzel, Jacques Bughin, Mekala Krishnan, Jeongmin Seong, and Mac Muir. 2019. “Globalization in Transition: The Future of Trade and Value Chains.” McKinsey & Company, January 16. Accessed July 29, 2020. https://www.mckinsey.com/featured-insights/innovation-and-growth/globalization-in-transition-the-future-of-trade-and-value-chains.
   Google Scholar
• MacCarthy, B. L., and W. Atthirawong. 2003. “Factors Affecting Location Decisions in International Operations – a Delphi Study.” International Journal of Operations and Production Management 23 (7): 794–818.
   Web of Science ®Google Scholar
• Macharis, Cathy, Johan Springael, Klaas De Brucker, and Alain Verbeke. 2004. “PROMETHEE and AHP: The Design of Operational Synergies in Multicriteria Analysis: Strengthening PROMETHEE with Ideas of AHP.” European Journal of Operational Research 153 (2): 307–317.
   Web of Science ®Google Scholar
• Mangiaracina, Riccardo, Guang Song, and Alessandro Perego. 2015. “Distribution Network Design: A Literature Review and a Research Agenda.” International Journal of Physical Distribution & Logistics Management 45 (5): 506–531.
   Web of Science ®Google Scholar
• McCosh, Andrew M. 2007. “Reflections on Decision Support.” DSSResources.COM, December 19. Accessed May 7, 2020. http://dssresources.com/reflections/mccosh/mccosh12192007.html.
   Google Scholar
• Meixell, Mary J., and Vidyaranya B. Gargeya. 2005. “Global Supply Chain Design: A Literature Review and Critique.” Transportation Research Part E: Logistics and Transportation Review 41 (6): 531–550.
   Web of Science ®Google Scholar
• Melnyk, Steven A., Ram Narasimhan, and Hugo A. DeCampos. 2014. “Supply Chain Design: Issues, Challenges, Frameworks and Solutions.” International Journal of Production Research 52 (7): 1887–1896.
   Web of Science ®Google Scholar
• Melo, M. T., S. Nickel, and F. Saldanha-da-Gama. 2009. “Facility Location and Supply Chain Management – A Review.” European Journal of Operational Research 196 (2): 401–412.
   Web of Science ®Google Scholar
• Meyr, Herbert, Michael Wagner, and Jens Rohde. 2015. “Structure of Advanced Planning Systems.” In Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies, edited by Hartmut Stadtler, Christoph Kilger, and Herbert Meyr, 99–106. Berlin, Heidelberg: Springer.
   Google Scholar
• Miller, G. A. 1956. “The Magical Number Seven Plus or Minus Two: Some Limits on Our Capacity for Processing Information.” Psychological Review 63 (2): 81–97.
   PubMed Web of Science ®Google Scholar
• O’Keefe, R. 2014. “Design Science, the Design of Systems and Operational Research: Back to the Future?” The Journal of the Operational Research Society 65 (5): 673–684.
   Web of Science ®Google Scholar
• Olhager, Jan, Sebastian Pashaei, and Henrik Sternberg. 2015. “Design of Global Production and Distribution Networks: A Literature Review and Research Agenda.” International Journal of Physical Distribution & Logistics Management 45 (1–2): 138–158.
   Web of Science ®Google Scholar
• Ozgen, Dogan, and Bahadir Gulsun. 2014. “Combining Possibilistic Linear Programming and Fuzzy AHP for Solving the Multi-Objective Capacitated Multi-Facility Location Problem.” Information Sciences 268: 185–201.
   Web of Science ®Google Scholar
• Pareto, Vilfredo. 1906. Manuale di economia politica. Vol. 13. Milan: Societa Editrice.
   Google Scholar
• Power, Daniel J., Frada Burstein, and Ramesh Sharda. 2011. “Reflections on the Past and Future of Decision Support Systems: Perspective of Eleven Pioneers.” In Decision Support, edited by David Schuff, David Paradice, Frada Burstein, Daniel J. Power, and Ramesh Sharda, 25–48. New York: Springer.
   Google Scholar
• Reich, Juri, Aseem Kinra, and Herbert Kotzab. 2019. “Strategic Decision-Making in Global Supply Chain Network Design – How a Decision Support System Combining MILP and AHP on a Pareto Front Can Alleviate Decision-Making.” IFAC-PapersOnLine 52 (13): 2285–2290.
   Google Scholar
• Saaty, Thomas L. 1980. The Analytic Hierarchy Process: Planning, Priority Setting, Resource Allocation. New York: McGraw Hill.
   Google Scholar
• Saaty, Thomas L. 2013. Decision Making For Leaders: The Analytical Hierarchy Process for Decision in a Complex World. 3rd ed. Pittsburgh: RWS Publications.
   Google Scholar
• Schmidt, Günter, and Wilbert E. Wilhelm. 2000. “Strategic, Tactical and Operational Decisions in Multi-National Logistics Networks: A Review and Discussion of Modelling Issues.” International Journal of Production Research 38 (7): 1501–1523.
   Web of Science ®Google Scholar
• Schorsch, Timm, Carl Marcus Wallenburg, and Andreas Wieland. 2017. “The Human Factor in SCM.” International Journal of Physical Distribution & Logistics Management 47 (4): 238–262.
   Web of Science ®Google Scholar
• Siraj, Sajid, Ludmil Mikhailov, and John A. Keane. 2015. “PriEsT: An Interactive Decision Support Tool to Estimate Priorities from Pairwise Comparison Judgments.” International Transactions in Operational Research 22 (2): 217–235.
   Web of Science ®Google Scholar
• Srai, Jagjit Singh, and Camille Ané. 2016. “Institutional and Strategic Operations Perspectives on Manufacturing Reshoring.” International Journal of Production Research 54 (23): 7193–7211.
   Web of Science ®Google Scholar
• Tukamuhabwa, Benjamin R., Mark Stevenson, Jerry Busby, and Marta Zorzini. 2015. “Supply Chain Resilience: Definition, Review and Theoretical Foundations for Further Study.” International Journal of Production Research 53 (18): 5592–5623.
   Web of Science ®Google Scholar
• Validi, Sahar, Arijit Bhattacharya, and P. J. Byrne. 2014. “A Case Analysis of a Sustainable Food Supply Chain Distribution System—A Multi-Objective Approach.” International Journal of Production Economics 152: 71–87.
   Web of Science ®Google Scholar
• Van Aken, Joan Ernst. 2007. “Design Science and Organization Development Interventions: Aligning Business and Humanistic Values.” The Journal of Applied Behavioral Science 43 (1): 67–88.
   Google Scholar
• Van Aken, Joan Ernst, Aravind Chandrasekaran, and Joop Halman. 2016. “Conducting and Publishing Design Science Research: Inaugural Essay of the Design Science Department of the Journal of Operations Management.” Journal of Operations Management 47-48 (1): 1–8.
   Web of Science ®Google Scholar
• Vidal, Carlos J., and Marc Goetschalckx. 1997. “Strategic Production-Distribution Models: A Critical Review with Emphasis on Global Supply Chain Models.” European Journal of Operational Research 98 (1): 1–18.
   Web of Science ®Google Scholar
• Wagner, Gerald R. 2007. “Reflections on Decision Support.” DSSResources.COM, July 22. Accessed May 7, 2020. http://dssresources.com/reflections/gwagner/wagner07222007.html.
   Google Scholar
• Watson, Hugh J. 2007. “Reflections on Decision Support.” DSSResources.COM, July 6. Accessed May 7, 2020. http://dssresources.com/reflections/hwatson/hwatson07062007.html.
   Google Scholar
• World Bank. 2020. “Exports of Goods and Services (% of GDP).” World Bank National Accounts Data, and OECD National Accounts Data Files, July 29. Accessed July 29, 2020. https://data.worldbank.org/indicator/NE.EXP.GNFS.ZS.
   Google Scholar
• Yildiz, Hakan, Jiho Yoon, Srinivas Talluri, and William Ho. 2016. “Reliable Supply Chain Network Design.” Decision Sciences 47 (4): 661–698.
   Web of Science ®Google Scholar