Skip to main content
Log in

Supply chain network design: partner selection and production/distribution planning using a systematic model

  • Theoretical Paper
  • Published:
Journal of the Operational Research Society

Abstract

In this paper, a novel multi-phase mathematical approach is presented for the design of a complex supply chain network. From the point of network design, customer demands, and for maximum overall utility, the important issues are to find suitable and quality companies, and to decide upon an appropriate production/distribution strategy. The proposed approach is based on the genetic algorithm (GA), the analytical hierarchy process (AHP), and the multi-attribute utility theory (MAUT) to satisfy simultaneously the preferences of the suppliers and the customers at each level in the network. A case study with a good quality solution is provided to confirm the efficiency and effectiveness of the proposed approach. Finally, to demonstrate the performance of the proposed approach, a comparative numerical experiment is performed by using the proposed approach and the common single-phase genetic algorithm (SGA). Empirical analysis results demonstrate that the proposed approach can outperform the SGA in partner selection and production/distribution planning for network design.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
Figure 7
Figure 8

Similar content being viewed by others

References

  • Meade L, Liles D and Sarkis J (1997). Justifying strategic alliances and partnering: a prerequisite for virtual enterprising. Omega—Int JMngt Sci 25: 29–42.

    Google Scholar 

  • Jagdev H and Browne J (1998). The extended enterprise—a context for manufacturing. Prod Plan Control 9: 216–229.

    Article  Google Scholar 

  • Talluri S, Baker R and Sarkis J (1999). A framework for designing efficient value chain networks. Int J Prod Econ 62: 133–144.

    Article  Google Scholar 

  • Papazoglou M, Ribbers P and Tsalgatidou A (2000). Integrated value chains and their applications from a business and technology standpoint. Decis Support Syst 29: 323–342.

    Article  Google Scholar 

  • Mikhailov L (2002). Fuzzy analytical approach to partnership selection in formation of virtual enterprises. Omega—Int J Mngt Sci 30: 393–401.

    Article  Google Scholar 

  • Sha DY and Che ZH (2005). Virtual integration with a multi-criteria partner selection model for the multi-echelon manufacturing system. Int J Adv Manuf Tech 25: 793–802).

    Article  Google Scholar 

  • Korhonen P, Huttunen K and Eloranta E (1998). Demand chain management in global enterprise–information management view. Prod Plan Control 9: 526–531.

    Article  Google Scholar 

  • Davis M and O’Sullivan D (1999). Systems design framework for the extended enterprise. Prod Plan Control 10: 3–18.

    Article  Google Scholar 

  • Talluri S and Baker R (1996). Quantitative framework for designing efficient business process alliances. Proceedings of 1996 International Conference on Engineering and Technology Management Piscataway, pp 656–661.

  • Weber CA and Desai A (1996). Determination of paths to vendor market efficiency using parallel coordinates representation: a negotiation tool for buyers. Eur J Opl Res 90: 142–155.

    Article  Google Scholar 

  • Wang D, Ip WH and Yung KL (2001). A heuristic genetic algorithm for subcontractor selection in a global manufacturing environment. IEEE Trans Syst Man Cybern C 31: 189–198.

    Article  Google Scholar 

  • Muralidharan C, Anatharaman N and Deshmukh SG (2002). A multi-criteria group decision making model for supplier rating. J Supply Chain Mngt 3: 22–33.

    Article  Google Scholar 

  • Gen M and Cheng R (1997). Genetic Algorithms and Engineering Design. Wiley: New York.

    Google Scholar 

  • Holland JH (1975). Adaptation in Natural and Artificial Systems. University of Michigan Press: Ann Arbor.

    Google Scholar 

  • Saaty TL (1980). The Analytic Hierarchy Process. McGraw-Hill: New York.

    Google Scholar 

  • Saaty TL (1983). Priority setting in complex problems. IEEE Trans Eng Mngt 30: 140–155.

    Article  Google Scholar 

  • Dyer RF and Forman EH (1992). Group decision support with the analytic hierarchy process. Decis Support Syst 8: 99–124.

    Article  Google Scholar 

  • Korpela J, Lehmusvaara A and Tuominen M (1999). An integrated approach for truck carrier selection. Int J Logistic 2: 5–20.

    Article  Google Scholar 

  • Al-Harbi KMAS (2001). Application of the AHP in project management. Int J Proj Mngt 19: 19–27.

    Article  Google Scholar 

  • Lai VS, Wong BK and Cheung W (2002). Group decision making in a multiple criteria environment: a case using the AHP in software selection. Eur J Opl Res 187: 134–144.

    Article  Google Scholar 

  • Muralidhar K, Santhanam R and Wilson RL (1990). Using the analytic hierarchy process for information system project selection. Inform Mngt 18: 87–95.

    Google Scholar 

  • Keeney RL and Raiffa H (1976). Decisions with Multiple Objectives: Preferences and Value Tradeoffs. Wiley: New York.

    Google Scholar 

  • Suslick SB and Furtado R (2001). Quantifying the value of technological, environmental and financial gain in decision models for offshore oil exploration. J Petrol Sci Eng 32: 115–125.

    Article  Google Scholar 

  • Walls MR (1995). Corporate risk tolerance and capital allocation: a practical approach to implementing an exploration risk policy. J Petrol Tech 47: 307–311.

    Article  Google Scholar 

  • Walls MR and Dyer JS (1996). Risk propensity and firm performance: a study of the petroleum exploration industry. Mngt Sci 42: 1004–1021.

    Article  Google Scholar 

  • Kumar J and Sheblé G (1997). A decision analysis approach to the transaction selection problem in a competitive electric market. Electr Pow Syst Res 38: 209–216.

    Article  Google Scholar 

  • Nepomuceno F, Suslick SB and Walls MR (1999). Investment and technology decision model in offshore oil exploration in Brazil: a decision analysis using multi-attribute utility theory. Nat Resour Res, JIntMath Geol 8: 193–203.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Z H Che.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Sha, D., Che, Z. Supply chain network design: partner selection and production/distribution planning using a systematic model. J Oper Res Soc 57, 52–62 (2006). https://doi.org/10.1057/palgrave.jors.2601949

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/palgrave.jors.2601949

Keywords

Navigation