Article ID: | iaor201525890 |
Volume: | 23 |
Issue: | 2 |
Start Page Number: | 200 |
End Page Number: | 228 |
Publication Date: | May 2015 |
Journal: | International Journal of Operational Research |
Authors: | Cole Barrie M, Bradshaw Steven, Potgieter Herman |
Keywords: | combinatorial optimization, stochastic processes, programming: multiple criteria |
This paper addresses the optimisation of supply chains that are subject to any pertinent conditions of operational uncertainty (multi‐objectivity, fuzziness, stochastic's) that may exist in an operational environment, the first part of the paper deals with the derivation of such methodology which is based on an analysis of prior multi‐uncertainty level supply chain optimisation techniques followed by the formulation of a generic supply chain, under pertinent conditions of uncertainty and optimisation methodology. The second part of this paper deals with an application of this methodology in a real life supply chain environment that involves the production and distribution of multiple blends of NPK fertiliser in an uncertain market characterised by fuzziness (<, ≤, > or ≥) and multi‐objectivity (multiple blends of NPK fertiliser). Optimum results showed an improvement of 9.3% over existing production and sales capacity.