Bi-objective Build-to-order Supply Chain Problem with Customer Utility

Authors

1 Department of Industrial Engineering, Albourz Campus, University of Tehran, Tehran, Iran

2 School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

3 LCFC, Arts et Métiers Paris Tech, Metz, France

Abstract

Taking into account competitive markets, manufacturers attend more customer’s personalization. Accordingly, build-to-order systems have been given more attention in recent years. In these systems, the customer is a very important asset for us and has been paid less attention in the previous studies. This paper introduces a new build-to-order problem in the supply chain. This study focuses on both manufacturer's profit and customer's utility simultaneously where demand is dependent on customer's utility. The customer's utility is a behavior based upon utility function that depends on quality and price and customer's preferences. The new bi-objective non-linear problem is a multi-period, multi-product and three-echelon supply chain in order to increase manufacturer's profit and customer's utility simultaneously. Solving the complicated problem, two multi-objective meta-heuristics, namely non-dominated ranked genetic algorithm (NRGA) and non-dominated sorting genetic algorithm (NSGA-II), were used to solve the given problem. Finally, the outcomes obtained by these meta-heuristics are analyzed.

Keywords

References

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International Journal of Engineering
Volume 31, Issue 7
TRANSACTIONS A: Basics
July 2018
Pages 1066-1073

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