An interactive approach for resolving conflicts between supplier and stockist in production planning

Up to the present, the evaluation measures to appreciate the production planning alternatives have been studied under the pre-condition that the costs of major factors (e.g. cost of carrying inventory, cost of demand shortage) are given easily, although in practice, it is difficult. The case in which stockist and supplier have difficult conflicting criteria in production management has not been studied, in spite of its frequent occurrence. This study suggests a production planning model with multiple objectives corresponding to major factors and a related interactive algorithm based on the preference structures of stockist and supplier. The problem can be solved through a weighting vector generated by the interaction between stockist and supplier. The concept of equity is also used to guarantee the reasonable distribution of group utility in determining the individual relative weights of stockist and supplier. This study includes the reality of the model and the decision process in the production planning problem.