Possibilistic linear-programming approach for supply chain networking decisions

Kabak Ö., Ulengin F.

EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, vol.209, no.3, pp.253-264, 2011 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 209 Issue: 3
  • Publication Date: 2011
  • Doi Number: 10.1016/j.ejor.2010.09.025
  • Journal Name: EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.253-264
  • Keywords: Supply chain management, Fuzzy modelling, Possibilistic linear programming, Supply chain strategy, Networking, MULTIOBJECTIVE OPTIMIZATION, UNCERTAIN ENVIRONMENT, FUZZY ENVIRONMENT, MODEL, DESIGN, MANAGEMENT, FLEXIBILITY, CONSTRAINTS, VARIABLES, DEMAND
  • Istanbul Technical University Affiliated: Yes

Abstract

Supply chain networking decisions are very important for the medium- and long-term planning success of manufacturing companies. The inputs to supply chain planning models are subject to environmental and system uncertainties. In this paper, a fuzzy set theory-based model is proposed to deal with those uncertainties. For this purpose, a possibilistic linear programming (PLP) model is used to make strategic resource-planning decisions using fuzzy demand forecasts and fuzzy yield rates as well as other inputs such as costs and capacities. The objective of the proposed PLP is to maximize the total profit of the enterprise. The model is applied to Mercedes-Benz Turk, one of the largest bus-manufacturing companies in the world, and conclusions and suggestions for further research are provided. (C) 2010 Elsevier B.V. All rights reserved.