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Fuzzy-optimisation-based decision-making support for integrated order allocation, production planning, and inventory control in supply chain management

Author

Listed:
  • S. Solikhin
  • S. Sutrisno
  • Abdul Aziz
  • Purnawan Adi Wicaksono

Abstract

This study proposes a fuzzy-optimisation model to be used as decision-making support for problems associated with order allocation, production planning, and inventory control. The model was used because some parameters in the problems were uncertain and treated as fuzzy variables. It was further optimised to perform two objective functions which include product quantity and total operational cost. Fuzzy-expectation-based programming was applied to make an optimal decision on the quantity of raw materials to be ordered from each supplier as well as to ascertain the quantity of products to be produced and the raw materials and products to be stored in the warehouse. Moreover, numerical experiments were conducted to demonstrate the procedure through which the problem was solved and the results showed the proposed decision-making support system is reliable.

Suggested Citation

  • S. Solikhin & S. Sutrisno & Abdul Aziz & Purnawan Adi Wicaksono, 2023. "Fuzzy-optimisation-based decision-making support for integrated order allocation, production planning, and inventory control in supply chain management," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 18(2), pages 213-237.
    • Handle: RePEc:ids:ijpman:v:18:y:2023:i:2:p:213-237
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