tailieunhanh - Fuzzy multi-criteria approach to ordering policy ranking in a supply chain

In this paper, a new fuzzy multi-criteria mathematical model for the selection of the best among a finite number of ordering policy of raw material in a supply chain is developed. The problem treated is a part of the purchasing plan of a company in an uncertain environment and it is very common in business practice. Optimization criteria selected describe the performance measures of ordering policies and generally their relative importance is different. It is assumed that the values of the optimization criteria are vague and imprecise. | Yugoslav Journal of Operations Research 15 (2005), Number 2, 243-258 FUZZY MULTI-CRITERIA APPROACH TO ORDERING POLICY RANKING IN A SUPPLY CHAIN Danijela TADIĆ Faculty of Mechanical Engineering, University of Kragujevac Kragujevac, Serbia & Montenegro Received: October 2003 / Accepted: January 2005 Abstract: In this paper, a new fuzzy multi-criteria mathematical model for the selection of the best among a finite number of ordering policy of raw material in a supply chain is developed. The problem treated is a part of the purchasing plan of a company in an uncertain environment and it is very common in business practice. Optimization criteria selected describe the performance measures of ordering policies and generally their relative importance is different. It is assumed that the values of the optimization criteria are vague and imprecise. They are described by discrete fuzzy numbers and by linguistic expressions. The linguistic expressions are modelled by discrete fuzzy sets. The measures of belief that one ordering policy is better than another are defined by comparing fuzzy numbers. An illustrative example is given. Keywords: Supply chain, ordering policy, fuzzy data, fuzzy rank, multi-criteria optimization. 1. INTRODUCTION The design and management of supply chains (SC) are nowadays one of the most active research topics of management decision making in SC. In the literature, there is no quantitative and precise definition of SC. Usually it is defined as an integrated process where several business entities, such as suppliers, production plants, warehouses and customers work together to plan, coordinate and control raw materials, in-process products, and end products from suppliers to customers [17]. Social, economic, technological and other environmental changes in the business world request changes in the operation of SC. The complexity of decisionmaking in coordinated management is permanently increasing. By applying coordinated management and control the .