Strategic Decision-making in Global Supply Chain Network Design: How a Decision Support System Combining MILP and AHP on a Pareto Front Can Alleviate Decision-making

Juri Reich*, Aseem Kinra, Herbert Kotzab

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

Integrating quantitative and qualitative data is a challenge in global supply chain decision making Decision support tools should be easier to use and focus on providing transparency and supporting human judgement. A strong emphasis on multi-objective models and trade-offs is needed. We investigate methods to solve strategic global supply chain network design problems and develop a solution framework, comprised of mixed-integer linear programming, the Analytical Hierarchy Process and the Pareto front. It is applied in a case study in the med-tech industry. Results show that the framework is easy to use for practitioners, accommodates qualitative as well as quantitative criteria and provides transparency over the entire range of efficient solutions. Managers can use it to discuss and select the configuration best fitting to their overall strategy. We believe the framework and application results can contribute to the development of more effective and user-friendly decision support tools for strategic global network design.
Original languageEnglish
Title of host publication9th IFAC Conference on Manufacturing Modelling, Management and Control MIM 2019
EditorsDmitry Ivanov, Alexandre Dolgui, Farouk Yalaoui
Number of pages6
Place of PublicationAmsterdam
PublisherElsevier
Publication dateSep 2019
Pages2285-2290
DOIs
Publication statusPublished - Sep 2019
Event9th IFAC Triannual Conference on Manufacturing Modeling, Management and Control. MIM 2019 - Berlin School of Economics and Law / Lichtenberg Campus, Berlin, Germany
Duration: 28 Aug 201930 Aug 2019
Conference number: 9
https://blog.hwr-berlin.de/mim2019/

Conference

Conference9th IFAC Triannual Conference on Manufacturing Modeling, Management and Control. MIM 2019
Number9
LocationBerlin School of Economics and Law / Lichtenberg Campus
CountryGermany
CityBerlin
Period28/08/201930/08/2019
Internet address
SeriesIFAC-PapersOnLine
Number13
Volume52
ISSN2405-8963

Keywords

  • Transportation logistics
  • Globalization
  • Data-Driven decision making
  • Enterprise networks
  • Supply logistics
  • Complexity modelling
  • Logistics in manufacturing

Cite this

Reich, J., Kinra, A., & Kotzab, H. (2019). Strategic Decision-making in Global Supply Chain Network Design: How a Decision Support System Combining MILP and AHP on a Pareto Front Can Alleviate Decision-making. In D. Ivanov, A. Dolgui, & F. Yalaoui (Eds.), 9th IFAC Conference on Manufacturing Modelling, Management and Control MIM 2019 (pp. 2285-2290). Amsterdam: Elsevier. IFAC-PapersOnLine, No. 13, Vol.. 52 https://doi.org/10.1016/j.ifacol.2019.11.546