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Possibilistic linear-programming approach for supply chain networking decisions

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  • Kabak, Özgür
  • Ülengin, Füsun
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    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 Türk, one of the largest bus-manufacturing companies in the world, and conclusions and suggestions for further research are provided.

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    Bibliographic Info

    Article provided by Elsevier in its journal European Journal of Operational Research.

    Volume (Year): 209 (2011)
    Issue (Month): 3 (March)
    Pages: 253-264

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    Handle: RePEc:eee:ejores:v:209:y:2011:i:3:p:253-264

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    Web page: http://www.elsevier.com/locate/eor

    Related research

    Keywords: Supply chain management Fuzzy modelling Possibilistic linear programming Supply chain strategy Networking;

    References

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    1. Wang, Reay-Chen & Fang, Hsiao-Hua, 2001. "Aggregate production planning with multiple objectives in a fuzzy environment," European Journal of Operational Research, Elsevier, vol. 133(3), pages 521-536, September.
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    9. Lakhal, Salem & Martel, Alain & Kettani, Ossama & Oral, Muhittin, 2001. "On the optimization of supply chain networking decisions," European Journal of Operational Research, Elsevier, vol. 129(2), pages 259-270, March.
    10. Sabri, Ehap H. & Beamon, Benita M., 2000. "A multi-objective approach to simultaneous strategic and operational planning in supply chain design," Omega, Elsevier, vol. 28(5), pages 581-598, October.
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    12. Lakhal, Salem Y., 2006. "An operational profit sharing and transfer pricing model for network-manufacturing companies," European Journal of Operational Research, Elsevier, vol. 175(1), pages 543-565, November.
    13. Petrovic, Dobrila & Roy, Rajat & Petrovic, Radivoj, 1999. "Supply chain modelling using fuzzy sets," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 443-453, March.
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    Cited by:
    1. Volling, Thomas & Matzke, Andreas & Grunewald, Martin & Spengler, Thomas S., 2013. "Planning of capacities and orders in build-to-order automobile production: A review," European Journal of Operational Research, Elsevier, vol. 224(2), pages 240-260.

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