Optimization of Supply Chain Planning with Considering Defective Rates of Products in Each Echelon

Behin Elahi, Yaser Pakzad-Jafarabadi, Leila Etaati, Seyed-Mohammad Seyedhosseini

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Department of Industrial Engineering- Iran University of Science and Technology, Tehran, Iran.

DOI: 10.4236/ti.2011.23022                

Abstract

Supply Chain Planning has recently received considerable attention in both academia and industry. The major targets of supply chain planning are to reduce production costs, risks, delays and maximize or improve profit, quality of product, customer service which result in increased competitiveness, more customer satisfaction and portability. In this study, a new bi-objective mathematical modeling for a four-echelon supply chain, consisting multi-supplier, assembler, distribution center and retailer, with considering the defective rates of products is proposed. Then, fuzzy compromise programming method is applied to solve the non-linear mixed-integer bi-objective model. Finally, a numerical example is given to illustrate application of the proposed algorithm and the efficacy and efficiency of that are verified through this section. It has been shown that such an approach can significantly help the managers to decide properly toward economic supply chain planning.

Keywords

Supply Chain Management, Supply Chain Planning, Mathematical Model, Non-linear Mixed Integer Programming, Fuzzy Compromise Programming

Conflicts of Interest

The authors declare no conflicts of interest.

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