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Towards a multi-objective performance assessment and optimization model of a two-echelon supply chain using SCOR metrics

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  • Weihua Zhang
  • Marc Reimann

Abstract

This paper aims at multi-objective performance assessment and optimization of a multi-period two-echelon supply chain consisting of a supplier and a manufacturer. On the basis of the assessment system of the supply-chain operations reference model, the supply chain’s performance is investigated with respect to costs, assets, agility, reliability and responsiveness. First, methods to quantify these five performance attributes are put forward. Then a multi-objective mathematical programming model is developed for production decision making of components and products so that the supply chain’s performance frontier formed with Pareto efficient performance values can be achieved. Thereafter a simple augmented $$\epsilon $$ -constraint method is proposed for searching for all Pareto efficient solutions of the multi-objective mathematical programming problem. Finally, efficiency of the method is demonstrated with a numerical example and a sensitivity analysis is implemented to reveal effects of capacity expansion on supply chains’ performance. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Weihua Zhang & Marc Reimann, 2014. "Towards a multi-objective performance assessment and optimization model of a two-echelon supply chain using SCOR metrics," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 22(4), pages 591-622, December.
  • Handle: RePEc:spr:cejnor:v:22:y:2014:i:4:p:591-622
    DOI: 10.1007/s10100-013-0294-7
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