Int. J Sup. Chain. Mgt Vol. 3, No. 4, December 2014 49 A Web Based Optimization System Using Goal Programming for Supply Chain Network Alp Ustundag 1 , Aysenur Budak 2 , Peiman Alipour Sarvari 3 , Mahir Oner 4 # Industrial Engineering Department, Istanbul Technical University Macka, Istanbul, 34367, Turkey 1 ustundaga@itu.edu.tr 2 abudak@itu.edu.tr 3 alipoursarvarip@itu.edu.tr 4 mahironer@itu.edu.tr Abstract— Considering high competitive nature of today’s industries, being on plan is very vital for supply chain network of an organization. All the flows of materials from initial suppliers to final customers need to be smooth. Hence, distribution network design is an important strategic decision problem for the supply chain managers. The aim of this research is to propose a web-based Decision Support System (DSS) for optimizing fuzzy distribution network in the context of supply-chain management. A fuzzy goal-programming model has been designed for the proposed DSS to consider the uncertain and imprecise data. This research focuses on four conflict fuzzy goals of (i). all demands must be covered by distribution center, (ii). investment goals for opening new sites considering fix costs, (iii). Investment goals for opening new distribution centers considering fix costs, (iv). Supply costs goals, to meet the optimized results. Hence with those attributes of membership function of goals, the decision makers can apply this model to obtain the investment policy and the achieved level of each individual goal. Keywords— Distribution Network Optimization, Fuzzy Goal Programming (FGP), SCN, Web-Based Decision Support System 1. Introduction Supply-chain management and distribution networks design have attracted the attention of many researchers during recent years. Satisfying the customers’ demands on time will lead to cost reductions, and will also increase the service level of the supply chain [1]. The best organizations around the world are trying to empower supply- chain management what encompasses all of those integrated activities that bring product to market and create satisfied customers more and more. A supply chain consists of the series of activities and organizations that materials move through on their journey from initial suppliers to final customers [2]. Nowadays with the increasing of industry’s competitive nature, it is very critical for organizations that supply chains continue to work as planned, with smooth and uninterrupted flows of materials from initial suppliers through to final customers. In today’s world, customers are tightening their requirements in terms of throughput time and perfect-order delivery while demanding continuous reductions in supply chain cost. At this point, distribution network design (DND) emerges as a major problem faced by the supply chain managers. DND problem consists of selecting locations to install factories, warehouses, and distribution centers; assigning customers to serving facilities; and interconnecting facilities by flow assignment [3]. To design and solve a distribution network problem, Decision Support System (DSS) is a useful methodology. DSS helps to manage supply chain networks effectively and efficiently. The advantages of DSS can be listed as obtaining real data, documents, models or knowledge to decision makers. In addition DSS is a tool that helps to achieve better understanding of business, provide fast response to unexpected and uncertain situations, minimize cost and time, obtain better decisions and better use of data resources assuring more effective teamwork and visualizing graphical information [4]. Moreover, by using Web-based DSS, the benefits that wide accessibility, ease of use, portability, effectiveness and time reduction can be achieved and reduction of limitations such as poor ______________________________________________________________ International Journal of Supply Chain Management IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/)