Strategic global supply chain network design – how decision analysis combining MILP and AHP on a Pareto front can improve decision-making

Juri Reich, Aseem Kinra, Herbert Kotzab, Xavier Brusset

Publication: Scientific journalJournal articlepeer-review

Abstract

Integrating a broad range of information types and finding trade-offs between conflicting goals is achallenge in global supply chain network design (GSCND). Effective decision support systems (DSS)should be user-friendly, provide transparency, and support human judgement. There is a wide range of optimisation models that aim to improve the out come of network design decisions. However, their practical performance often remains unknown, as their implementation into the managerial decision process is largely neglected. Such theory-driven models usually focus on single aspects of the decision, without being able to accommodate the practical problem comprehensively. We employthe CIMO approach to resolve the issue and contribute by showing how an integration involving these methods can be useful for managers once the proper knowledge transfer has been effectuated. An innovative decision support framework, which combines mixed-integer linear programming, the Analytical Hierarchy Process, and the Pareto front is created and analysed during a case study in themed-tech industry. Results show that the framework accommodates managerial experience, integrates qualitative as well as quantitative criteria, and provides transparency over the entire range ofefficient solutions. The framework and application results contribute towards the development of more flexible and easy-to-use decision support systems for GSCND.
Original languageEnglish
Pages (from-to)1557-1572
JournalInternational Journal of Production Research
Volume59
Issue number5
DOIs
Publication statusPublished - 2021

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