Allocating production batches to subcontractors by fuzzy goal programming

Allocating production batches to subcontractors arises frequently in industry. When subcontractors operate different equipment, batch assignment is a complex decision that must take into account both throughput and quality of finished goods. In this paper, a Mixed Integer Linear Goal Programming Model, where productivity uncertainty is taken into account through Fuzzy Set Theory, is developed. Our study was motivated by a real-world application arising in an Italian textile company. Computational results show that this method outperforms the hand-made solutions put to use by the management so far.