Integrated FANP-f-MIGP model for supplier selection in the renewable energy sector

The available integrated models for choosing efficient suppliers developed so far are mostly specific to companies with mass production capabilities. However, in some sectors involved in project-type manufacturing, the same decision-making criteria cannot be applied and, plus, there is no point in determining the quantity of orders. For instance, in wind power plant projects, a single turbine supplier needs to be selected for each project. This study proposes an integrated FANP-f-MIGP model that ensures the selection of the optimal supplier for each project by applying the model to an energy firm. The criteria specific to the selection of wind power plant turbine suppliers are established, and the criteria weights are obtained by fuzzy analytic network process (FANP). As a result of the analysis, the most important criterion of all is cost. These weights constitute the coefficients of the f-MIGP model’s objective function. Under the defined constraints, by minimizing cost and risk and maximizing quality and services of the firm, the selection of an optimal wind turbine supplier from three suppliers for each of three projects is ensured. This study contributes to the literature both by the specific criteria it establishes and its proposed integrated model which allows for the selection of the best supplier in wind turbine and similar project-based productions

A reusable iterative optimization software library to solve combinatorial problems with approximate reasoning

Real world combinatorial optimization problems such as scheduling are typically too complex to solve with exact methods. Additionally, the problems often have to observe vaguely specified constraints of different importance, the available data may be uncertain, and compromises between antagonistic criteria may be necessary. We present a combination of approximate reasoning based constraints and iterative optimization based heuristics that help to model and solve such problems in a framework of C++ software libraries called StarFLIP++. While initially developed to schedule continuous caster units in steel plants, we present in this paper results from reusing the library components in a shift scheduling system for the workforce of an industrial production plant.Comment: 33 pages, 9 figures; for a project overview see http://www.dbai.tuwien.ac.at/proj/StarFLIP

Effectiveness of R&D project selection in uncertain environment: An empirical study in the German automotive supplier industry

This paper presents results of an empirical large-scale study on uncertainty reduction of R&D projects and R&D project selection. The empirical field is the German automotive supplier industry. We explore R&D project selection practices in this specific industry and briefly contrast our findings with the academic research and management literature in this field. We concentrate on answering three research questions (with focus on questions no. 1 and 2): I. Which information and related uncertainties are crucial for the product selection decision to the R&D decision makers? II. How do R&D decision makers today cope with typical challenges related to reducing uncertainty? Where do they face major problems and how effective are they? III. What are major implications for managing the Fuzzy Front End (FFE) of innovation process in industry practice and respectively for further academic research in this field? Key findings are that on the one hand certainty about fields of product applications, target markets and production feasibility are most important criteria for initial product selection decisions. On the other hand market and cost related uncertainties (e.g. sales volume, product price, cost per unit) cannot be satisfyingly reduced in practice before project approval for development or definite termination of projects. Although different uncertainty profiles exist within the process of project evaluation, most companies do not systematically choose available product selection methods and tools according to specific uncertainty situations. Intuition still plays a major role in R&D product selection. Some first conclusion drawn from this research are: A sufficient level of resources (including financial and methodological know-how), a systematic use of suitable project selection instruments, and a fit with the company specific as well as the OEMs' product/brand strategies can be potential levers for more effective uncertainty reduction before product decision. --

A Decision Tool for Supplier Selection That Takes into Account Power and Performance

Companies select their suppliers to provide required performance while being successful partners. An important aspect of collaboration is the power relationship between the company and its suppliers. Although the significance of power in supplier selection is acknowledged, published work rarely includes assessment of power. An empirical study on selecting suppliers for new product developments in a major European diesel engine manufacturing company, supported by three smaller studies with electronic engineering companies, frames overall questions regarding the importance of incorporating power into supplier selection and how this might be achieved. This research proposes an approach that assesses both performance and power and integrates the assessment results by modelling the relative effects of power and performance. It positions the suppliers into six scenarios (ideal, satisfying, tolerable, unfavourable, risky and tough) which depict to what extent a supplier is ‘suitable’ to work with. A reverse analysis reviews the relationship when several suppliers appear suitable. An assessment method is developed incorporating both subjective and objective data for qualitative and quantitative criteria. It combines two decision making methods, AHP and TOPSIS, with triangular fuzzy numbers. Multiple judgements from several decision makers are synthesised. This method is adapted for performance assessment of single, group and cross-group suppliers. Weights are calculated for the criteria, and combined with calculations of supplier performance against each criterion to provide an overall assessment and supplier profile. Power is quantified against a set of power determinants and power relations (supplier dominance, buyer dominance and balanced) are determined. The effects of supplier perceptions (objective, optimistic and pessimistic) are estimated in the calculation. The proposed approach involves complex calculations and a prototype software tool is developed with graphical interfaces. The tool includes performance criteria and power determinants collected from literature and allows users to define new ones. Application to an agriculture case enables the sustainable performance of suppliers (farmers) to be evaluated and compared

Advances in Methodology and Applications of Decision Support Systems

These Proceedings are composed of a selection of papers of the Workshop on Advances in Methodology and Applications of Decision Support Systems, organized by the System and Decision Sciences (SDS) Program of IIASA and the Japan Institute of Systems Research (JISR). The workshop was held at IIASA on August 20-22, 1990. The Methodology of Decision Analysis (MDA) Project of the SDS Program focuses on a system-analytical approach to decision support and is devoted to developing methodology, software and applications of decision support systems concentrated primarily around interactive systems for data analysis, interpretation and multiobjective decisionmaking, including uncertainty analysis and group decision making situations in both their cooperative and noncooperative aspects. The objectives of the research on decision support systems (DSS) performed in cooperation with the MDA Project are to: compare various approaches to decision support systems; advance theory and methodology of decision support; convert existing theories and methodologies into usable (simple to use, user-friendly and robust) tools that could easily be used in solving real-life problems. A principal characteristic of decision support systems is that they must be tuned to specific decision situations, to complex real-life characteristics of every application. Even if the theory and methodology of decision support is quite advanced, every application might provide impulses for further theoretical and methodological advances. Therefore the principle underlying this project is that theoretical and methodological research should be strongly connected to the implementation and applications of its results to sufficiently complicated, real-life examples. This approach results in obtaining really applicable working tools for decision support. The papers for this Proceedings have been selected according to the above summarized framework of the research activities. Therefore, the papers deal both with theoretical and methodological problems and with real-life applications

DOMAIN-SPECIFIC DSS TOOLS FOR KNOWLEDGE-BASED MODEL BUILDING

The formulation of complex planning models, such as linear programming (LP) systems, is a difficult task that enjoys little support by current decision support systems tools. It is hypothesized that current artificial intelligence technology is insufficient to build generalized formulation tools that would be usable by OR-naive end users. As an alternative, this paper presents a domain-specific approach to knowledge-based model formulation which combines the use of "syntactic" knowledge about linear programming with âsemanticâ guidance by knowledge specific to some application domain. As a prototype of this approach, a model formulation tool for LP-based production management is under development at New York University.Information Systems Working Papers Serie

Integration of e-business strategy for multi-lifecycle production systems

Internet use has grown exponentially on the last few years becoming a global communication and business resource. Internet-based business, or e-Business will truly affect every sector of the economy in ways that today we can only imagine. The manufacturing sector will be at the forefront of this change. This doctoral dissertation provides a scientific framework and a set of novel decision support tools for evaluating, modeling, and optimizing the overall performance of e-Business integrated multi-lifecycle production systems. The characteristics of this framework include environmental lifecycle study, environmental performance metrics, hyper-network model of integrated e-supply chain networks, fuzzy multi-objective optimization method, discrete-event simulation approach, and scalable enterprise environmental management system design. The dissertation research reveals that integration of e-Business strategy into production systems can alter current industry practices along a pathway towards sustainability, enhancing resource productivity, improving cost efficiencies and reducing lifecycle environmental impacts. The following research challenges and scholarly accomplishments have been addressed in this dissertation: Identification and analysis of environmental impacts of e-Business. A pioneering environmental lifecycle study on the impact of e-Business is conducted, and fuzzy decision theory is further applied to evaluate e-Business scenarios in order to overcome data uncertainty and information gaps; Understanding, evaluation, and development of environmental performance metrics. Major environmental performance metrics are compared and evaluated. A universal target-based performance metric, developed jointly with a team of industry and university researchers, is evaluated, implemented, and utilized in the methodology framework; Generic framework of integrated e-supply chain network. The framework is based on the most recent research on large complex supply chain network model, but extended to integrate demanufacturers, recyclers, and resellers as supply chain partners. Moreover, The e-Business information network is modeled as a overlaid hypernetwork layer for the supply chain; Fuzzy multi-objective optimization theory and discrete-event simulation methods. The solution methods deal with overall system parameter trade-offs, partner selections, and sustainable decision-making; Architecture design for scalable enterprise environmental management system. This novel system is designed and deployed using knowledge-based ontology theory, and XML techniques within an agent-based structure. The implementation model and system prototype are also provided. The new methodology and framework have the potential of being widely used in system analysis, design and implementation of e-Business enabled engineering systems