Choosing the Optimal Supply Chain Contract Model: Features of Multicriteria Analysis with Risk Assessment
MAGAZINE №1(84) February 2018
AUTHORS GUSEV D.A., MAZUNINA О.А., FEL A.V.
CATEGORY Optimization and mathematical modelling Sourcing
ABSTRACT
Consideration of the supply chain from the point of view of objective understanding as a set of individuals and legal entities, interacting specifically and precisely in material, financial and information flows, presupposes the availability of a tool for fixing the rules for interaction of such parties. Such a tool already exists, it is a contract / agreement / agreement of the parties. It is the contract model of the supply chain that is of great importance in the process of value formation of the product, as it can be considered as a legal documental basis for mutual arrangements for the supply chain. Contract management tasks in the supply chain in terms of the optimal contract model choice are formalized it the paper for the first time as decision-making tasks under many criteria. This format of models allows to consider risks that can be formalized in the form of separate individual criteria. It is shown that a dimensionality phenomenon is associated with problems of this type which can be eliminated on the basis of a transition to new formats for the presentation of estimates of particular criteria: 1) the format of generalized selection criteria; 2) to the standardized form of the problem of choice. For both approaches, tasks of multicriteria choice of the contract model are formalized.
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The Goods Distribution in a Warehouse Network: Optimal Solutions for Many Criteria
MAGAZINE №1 (78) February 2017
AUTHORS
KULESHOVA E.S. - Planning Manager, Syngenta LTD (Moscow, Russia)
CATEGORY Optimization and economic-mathematical modeling Distribution logistics
ABSTRACT
The paper presents the research of features to determine the best solutions for the goods distribution in the warehouse network problem on many criteria. The authors have shown that the synthesis of the following methods or approaches can be applied effectively to a network for storage of optimization decisions. They are: 1) Simulation of random orders by Monte Carlo method at a regular interval of supply planning time. 2) Analytical hierarchy process to compare the importance of particular criteria, taking into account the decision maker's preferences. 3) Linear programming in order to minimize transportation and storage costs of the goods (in the format of apriori played out random shop’s orders scenarios to be analyzed in relation to the possible adoption of alternatives, and order execution strategies). The synthesis of these methods makes it possible to formalize a set of alternatives for the organization of deliveries from the central warehouse to the distribution warehouse and shops. The task of goods distribution in the warehouse network is formalized as the problem of multicriteria selection. The implementation of this approach to the solutions optimization for the goods distribution in the warehouse network is presented in this article. As partial criteria are considered: 1) the need to reduce the average daily stock levels, pallets (so the figure would be minimized); 2) the requirement to reduce the average daily cost of storage and cargo handling, USD (thus, the rate and should be minimized); 3) the need to reduce the average daily transport expenses, USD (and this figure will be reduced).
Approach to optimize the goods distribution in the warehouse network, presented in this article, has the following characteristics. Along with the optimization procedures in the article it is presented a special modification of indicators of partial criteria, which, in contrast to the traditional theory approaches of multicriteria optimization, allows to take into account the preferences of the decision maker more adequately. This is achieved by the developed synthesis procedures to be taken into account when optimizing the efficient approaches to providing indicators such as in the form of the theory of multicriteria optimization, and in the format of the method of analytic hierarchy. The paper reveals the procedure for determining the best solution on the basis of a) traditional and generalized selection criteria (multiplication, Hurwitz, maximin); b) the method of analytic hierarchy; c) modified selection criteria. The paper also gives recommendations how to adequately take into account the preferences of decision-makers on the importance of particular criteria and also analyzes the impact of changes in their structure on the ranking of alternatives for different selection criteria.
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