Multiobjective optimization as a decision aid for managing build-to-order supply chains

This paper provides an overview of multiobjective optimization (MOO) as a decision aid in build-to-order supply chains (BTO-SC). The main features of BTO-SCs are discussed along with capabilities of MOO to enhance decision making at different points along the chain. Key decision points across a typical BTO-SC are identified and potential applications of MOO are discussed. A sample application is presented and future avenues for further research highlighted

Decision support for build-to-order supply chain management through multiobjective optimization

This paper aims to identify the gaps in decision-making support based on multiobjective optimization for build-to-order supply chain management (BTOSCM). To this end, it reviews the literature available on modelling build-to-order supply chains (BTO-SC) with the focus on adopting multiobjective optimization (MOO) techniques as a decision support tool. The literature has been classified based on the nature of the decisions in different part of the supply chain, and the key decision areas across a typical BTO-SC are discussed in detail. Available software packages suitable for supporting decision making in BTO supply chains are also identified and their related solutions are outlined. The gap between the modelling and optimization techniques developed in the literature and the decision support needed in practice are highlighted and future research directions to better exploit the decision support capabilities of MOO are proposed

Decision support for build-to-order supply chain management through multiobjective optimization

This is the post-print version of the final paper published in International Journal of Production Economics. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. Copyright @ 2010 Elsevier B.V.This paper aims to identify the gaps in decision-making support based on multiobjective optimization (MOO) for build-to-order supply chain management (BTO-SCM). To this end, it reviews the literature available on modelling build-to-order supply chains (BTO-SC) with the focus on adopting MOO techniques as a decision support tool. The literature has been classified based on the nature of the decisions in different part of the supply chain, and the key decision areas across a typical BTO-SC are discussed in detail. Available software packages suitable for supporting decision making in BTO supply chains are also identified and their related solutions are outlined. The gap between the modelling and optimization techniques developed in the literature and the decision support needed in practice are highlighted. Future research directions to better exploit the decision support capabilities of MOO are proposed. These include: reformulation of the extant optimization models with a MOO perspective, development of decision supports for interfaces not involving manufacturers, development of scenarios around service-based objectives, development of efficient solution tools, considering the interests of each supply chain party as a separate objective to account for fair treatment of their requirements, and applying the existing methodologies on real-life data sets.Brunel Research Initiative and Enterprise Fund (BRIEF

Development of a dynamic simulation model for inventory level optimization through supply chain

System dynamic is an approach to understanding the behavior of complex systems over time. Current research on system dynamics modeling in supply chain management focuses on inventory decision and policy development, time compression, demand amplification, supply chain design and integration, and international supply chain management. Less attention has been devoted on the inventory level improvement with fuzzy demand controller in dynamic simulation model. This study is aimed to consider customer demand fluctuation to improve the finished goods inventory level of Electronic Company by using dynamic simulation model. Dynamic and changes in demand and corresponding excess during time through the product life is considered as serious problems in supply chain. Data collection and analysis have been considered to find the current problems of the company. Dynamic model has been constructed by ITHINK software to represent the inventory level of company. The stock and flow diagrams are become visible to represent the structure of a system with more detailed information. Three different variables have been applied in Fuzzy controller to give the better level of inventory by MATLAB SIMULINK. Generated results have been compared by current company inventory level in ITHINK software and the best alternative was selected to suggest the company management

AI and OR in management of operations: history and trends

The last decade has seen a considerable growth in the use of Artificial Intelligence (AI) for operations management with the aim of finding solutions to problems that are increasing in complexity and scale. This paper begins by setting the context for the survey through a historical perspective of OR and AI. An extensive survey of applications of AI techniques for operations management, covering a total of over 1200 papers published from 1995 to 2004 is then presented. The survey utilizes Elsevier's ScienceDirect database as a source. Hence, the survey may not cover all the relevant journals but includes a sufficiently wide range of publications to make it representative of the research in the field. The papers are categorized into four areas of operations management: (a) design, (b) scheduling, (c) process planning and control and (d) quality, maintenance and fault diagnosis. Each of the four areas is categorized in terms of the AI techniques used: genetic algorithms, case-based reasoning, knowledge-based systems, fuzzy logic and hybrid techniques. The trends over the last decade are identified, discussed with respect to expected trends and directions for future work suggested

Intelligent systems in manufacturing: current developments and future prospects

Global competition and rapidly changing customer requirements are demanding increasing changes in manufacturing environments. Enterprises are required to constantly redesign their products and continuously reconfigure their manufacturing systems. Traditional approaches to manufacturing systems do not fully satisfy this new situation. Many authors have proposed that artificial intelligence will bring the flexibility and efficiency needed by manufacturing systems. This paper is a review of artificial intelligence techniques used in manufacturing systems. The paper first defines the components of a simplified intelligent manufacturing systems (IMS), the different Artificial Intelligence (AI) techniques to be considered and then shows how these AI techniques are used for the components of IMS

Imprecise WareHouse Space in Aggregate Production Planning Using Fuzzy Goal Programming

Considering the fluctuating market demands with variable storage capacity and available production capacity, this study examines a number of workable techniques for modeling multiproduct aggregate production planning problems with fuzzy numbers. The suggested method makes use of factors including; inventory levels, labor levels, overtime, backordering levels, workforce capacity, machine capacity, and fuzzy warehouse capacity in an effort to reduce operating costs, reduce production waste, and increase capacity utilization rate. With the aid of this formulation and interpretation, a fuzzy multiproduct aggregate production planning model is developed. Finally, the study's conclusions were arrived at using information provided by Rich Pharmaceuticals Ltd. using Lingo version 18 software (RPL).and it uses parametric programming, best balancing, and interactive techniques to give solutions that can be adjusted to fit a variety of decision-making circumstances

Fuzzy goal programming for material requirements planning under uncertainty and integrity conditions

"This is an Accepted Manuscript of an article published in International Journal of Production Research on December 2014, available online: http://www.tandfonline.com/10.1080/00207543.2014.920115."In this paper, we formulate the material requirements planning) problem of a first-tier supplier in an automobile supply chain through a fuzzy multi-objective decision model, which considers three conflictive objectives to optimise: minimisation of normal, overtime and subcontracted production costs of finished goods plus the inventory costs of finished goods, raw materials and components; minimisation of idle time; minimisation of backorder quantities. Lack of knowledge or epistemic uncertainty is considered in the demand, available and required capacity data. Integrity conditions for the main decision variables of the problem are also considered. For the solution methodology, we use a fuzzy goal programming approach where the importance of the relations among the goals is considered fuzzy instead of using a crisp definition of goal weights. For illustration purposes, an example based on modifications of real-world industrial problems is used.This work has been funded by the Universitat Politecnica de Valencia Project: 'Material Requirements Planning Fourth Generation (MRPIV)' (Ref. PAID-05-12).Díaz-Madroñero Boluda, FM.; Mula, J.; Jiménez, M. (2014). Fuzzy goal programming for material requirements planning under uncertainty and integrity conditions. International Journal of Production Research. 52(23):6971-6988. doi:10.1080/00207543.2014.920115S697169885223Aköz, O., & Petrovic, D. (2007). A fuzzy goal programming method with imprecise goal hierarchy. European Journal of Operational Research, 181(3), 1427-1433. doi:10.1016/j.ejor.2005.11.049Alfieri, A., & Matta, A. (2010). Mathematical programming representation of pull controlled single-product serial manufacturing systems. Journal of Intelligent Manufacturing, 23(1), 23-35. doi:10.1007/s10845-009-0371-xAloulou, M. A., Dolgui, A., & Kovalyov, M. Y. (2013). A bibliography of non-deterministic lot-sizing models. International Journal of Production Research, 52(8), 2293-2310. doi:10.1080/00207543.2013.855336Barba-Gutiérrez, Y., & Adenso-Díaz, B. (2009). Reverse MRP under uncertain and imprecise demand. The International Journal of Advanced Manufacturing Technology, 40(3-4), 413-424. doi:10.1007/s00170-007-1351-yBookbinder, J. H., McAuley, P. T., & Schulte, J. (1989). Inventory and Transportation Planning in the Distribution of Fine Papers. Journal of the Operational Research Society, 40(2), 155-166. doi:10.1057/jors.1989.20Chiang, W. K., & Feng, Y. (2007). The value of information sharing in the presence of supply uncertainty and demand volatility. International Journal of Production Research, 45(6), 1429-1447. doi:10.1080/00207540600634949Díaz-Madroñero, M., Mula, J., & Jiménez, M. (2013). A Modified Approach Based on Ranking Fuzzy Numbers for Fuzzy Integer Programming with Equality Constraints. Annals of Industrial Engineering 2012, 225-233. doi:10.1007/978-1-4471-5349-8_27DOLGUI, A., BEN AMMAR, O., HNAIEN, F., & LOULY, M. A. O. (2013). A State of the Art on Supply Planning and Inventory Control under Lead Time Uncertainty. Studies in Informatics and Control, 22(3). doi:10.24846/v22i3y201302Dubois, D. (2011). The role of fuzzy sets in decision sciences: Old techniques and new directions. Fuzzy Sets and Systems, 184(1), 3-28. doi:10.1016/j.fss.2011.06.003Grabot, B., Geneste, L., Reynoso-Castillo, G., & V�rot, S. (2005). Integration of uncertain and imprecise orders in the MRP method. Journal of Intelligent Manufacturing, 16(2), 215-234. doi:10.1007/s10845-004-5890-xGuillaume, R., Thierry, C., & Grabot, B. (2010). Modelling of ill-known requirements and integration in production planning. Production Planning & Control, 22(4), 336-352. doi:10.1080/09537281003800900Heilpern, S. (1992). The expected value of a fuzzy number. Fuzzy Sets and Systems, 47(1), 81-86. doi:10.1016/0165-0114(92)90062-9Hnaien, F., Dolgui, A., & Ould Louly, M.-A. (2008). Planned lead time optimization in material requirement planning environment for multilevel production systems. Journal of Systems Science and Systems Engineering, 17(2), 132-155. doi:10.1007/s11518-008-5072-zHung, Y.-F., & Chang, C.-B. (1999). Determining safety stocks for production planning in uncertain manufacturing. International Journal of Production Economics, 58(2), 199-208. doi:10.1016/s0925-5273(98)00124-8Inderfurth, K. (2009). How to protect against demand and yield risks in MRP systems. International Journal of Production Economics, 121(2), 474-481. doi:10.1016/j.ijpe.2007.02.005JIMÉNEZ, M. (1996). RANKING FUZZY NUMBERS THROUGH THE COMPARISON OF ITS EXPECTED INTERVALS. International Journal of Uncertainty, Fuzziness and Knowledge-Based Systems, 04(04), 379-388. doi:10.1142/s0218488596000226Jiménez, M., Arenas, M., Bilbao, A., & Rodrı´guez, M. V. (2007). Linear programming with fuzzy parameters: An interactive method resolution. European Journal of Operational Research, 177(3), 1599-1609. doi:10.1016/j.ejor.2005.10.002Jones, D. (2011). A practical weight sensitivity algorithm for goal and multiple objective programming. European Journal of Operational Research, 213(1), 238-245. doi:10.1016/j.ejor.2011.03.012Lage Junior, M., & Godinho Filho, M. (2010). Variations of the kanban system: Literature review and classification. International Journal of Production Economics, 125(1), 13-21. doi:10.1016/j.ijpe.2010.01.009Jung, J. Y., Blau, G., Pekny, J. F., Reklaitis, G. V., & Eversdyk, D. (2004). A simulation based optimization approach to supply chain management under demand uncertainty. Computers & Chemical Engineering, 28(10), 2087-2106. doi:10.1016/j.compchemeng.2004.06.006Koh, S. C. L. (2004). MRP-controlled batch-manufacturing environment under uncertainty. Journal of the Operational Research Society, 55(3), 219-232. doi:10.1057/palgrave.jors.2601710Lai, Y.-J., & Hwang, C.-L. (1993). Possibilistic linear programming for managing interest rate risk. Fuzzy Sets and Systems, 54(2), 135-146. doi:10.1016/0165-0114(93)90271-iLee, H. L., & Billington, C. (1993). Material Management in Decentralized Supply Chains. Operations Research, 41(5), 835-847. doi:10.1287/opre.41.5.835Lee, Y. H., Kim, S. H., & Moon, C. (2002). Production-distribution planning in supply chain using a hybrid approach. Production Planning & Control, 13(1), 35-46. doi:10.1080/09537280110061566Li, X., Zhang, B., & Li, H. (2006). Computing efficient solutions to fuzzy multiple objective linear programming problems. Fuzzy Sets and Systems, 157(10), 1328-1332. doi:10.1016/j.fss.2005.12.003Louly, M.-A., & Dolgui, A. (2011). Optimal time phasing and periodicity for MRP with POQ policy. International Journal of Production Economics, 131(1), 76-86. doi:10.1016/j.ijpe.2010.04.042Louly, M. A., Dolgui, A., & Hnaien, F. (2008). Optimal supply planning in MRP environments for assembly systems with random component procurement times. International Journal of Production Research, 46(19), 5441-5467. doi:10.1080/00207540802273827Mohapatra, P., Benyoucef, L., & Tiwari, M. K. (2013). Integration of process planning and scheduling through adaptive setup planning: a multi-objective approach. International Journal of Production Research, 51(23-24), 7190-7208. doi:10.1080/00207543.2013.853890Mula, J., & Díaz-Madroñero, M. (2012). Solution Approaches for Material Requirement Planning* with Fuzzy Costs. Industrial Engineering: Innovative Networks, 349-357. doi:10.1007/978-1-4471-2321-7_39Mula, J., Poler, R., & García, J. P. (2006). Evaluación de Sistemas para la Planificación y Control de la Producción/[title] [title language=en]Evaluation of Production Planning and Control Systems. Información tecnológica, 17(1). doi:10.4067/s0718-07642006000100004Mula, J., Poler, R., & Garcia, J. P. (2006). MRP with flexible constraints: A fuzzy mathematical programming approach. Fuzzy Sets and Systems, 157(1), 74-97. doi:10.1016/j.fss.2005.05.045Mula, J., Poler, R., & Garcia-Sabater, J. P. (2008). Capacity and material requirement planning modelling by comparing deterministic and fuzzy models. International Journal of Production Research, 46(20), 5589-5606. doi:10.1080/00207540701413912Mula, J., Poler, R., & Garcia-Sabater, J. P. (2007). Material Requirement Planning with fuzzy constraints and fuzzy coefficients. Fuzzy Sets and Systems, 158(7), 783-793. doi:10.1016/j.fss.2006.11.003Mula, J., Poler, R., García-Sabater, J. P., & Lario, F. C. (2006). Models for production planning under uncertainty: A review. International Journal of Production Economics, 103(1), 271-285. doi:10.1016/j.ijpe.2005.09.001Noori, S., Feylizadeh, M. R., Bagherpour, M., Zorriassatine, F., & Parkin, R. M. (2008). Optimization of material requirement planning by fuzzy multi-objective linear programming. Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture, 222(7), 887-900. doi:10.1243/09544054jem1014Olhager, J. (2013). Evolution of operations planning and control: from production to supply chains. International Journal of Production Research, 51(23-24), 6836-6843. doi:10.1080/00207543.2012.761363Peidro, D., Mula, J., Alemany, M. M. E., & Lario, F.-C. (2012). Fuzzy multi-objective optimisation for master planning in a ceramic supply chain. International Journal of Production Research, 50(11), 3011-3020. doi:10.1080/00207543.2011.588267Peidro, D., Mula, J., Jiménez, M., & del Mar Botella, M. (2010). A fuzzy linear programming based approach for tactical supply chain planning in an uncertainty environment. European Journal of Operational Research, 205(1), 65-80. doi:10.1016/j.ejor.2009.11.031Peidro, D., Mula, J., Poler, R., & Lario, F.-C. (2008). Quantitative models for supply chain planning under uncertainty: a review. The International Journal of Advanced Manufacturing Technology, 43(3-4), 400-420. doi:10.1007/s00170-008-1715-yPeidro, D., Mula, J., Poler, R., & Verdegay, J.-L. (2009). Fuzzy optimization for supply chain planning under supply, demand and process uncertainties. Fuzzy Sets and Systems, 160(18), 2640-2657. doi:10.1016/j.fss.2009.02.021Sabri, E. H., & Beamon, B. M. (2000). A multi-objective approach to simultaneous strategic and operational planning in supply chain design. Omega, 28(5), 581-598. doi:10.1016/s0305-0483(99)00080-8Selim, H., & Ozkarahan, I. (2006). A supply chain distribution network design model: An interactive fuzzy goal programming-based solution approach. The International Journal of Advanced Manufacturing Technology, 36(3-4), 401-418. doi:10.1007/s00170-006-0842-6Suwanruji, P., & Enns, S. T. (2006). Evaluating the effects of capacity constraints and demand patterns on supply chain replenishment strategies. International Journal of Production Research, 44(21), 4607-4629. doi:10.1080/00207540500494527Torabi, S. A., & Hassini, E. (2008). An interactive possibilistic programming approach for multiple objective supply chain master planning. Fuzzy Sets and Systems, 159(2), 193-214. doi:10.1016/j.fss.2007.08.010Torabi, S. A., & Moghaddam, M. (2012). Multi-site integrated production-distribution planning with trans-shipment: a fuzzy goal programming approach. International Journal of Production Research, 50(6), 1726-1748. doi:10.1080/00207543.2011.560907Zimmermann, H.-J. (1978). Fuzzy programming and linear programming with several objective functions. Fuzzy Sets and Systems, 1(1), 45-55. doi:10.1016/0165-0114(78)90031-