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https://doi.org/10.1007/s12597-018-0340-2
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APPLICATION ARTICLE
Multi‑objective bi‑level supply chain network order
allocation problem under fuzziness
Srikant Gupta
1
· Irfan Ali
1
· Aquil Ahmed
1
Accepted: 21 September 2018
© Operational Research Society of India 2018
Abstract
In this paper we addressed supply chain network (SCN) as bi-level programming
problem in which the primary objective is to determine optimal order allocation of
products where the customer’s demands and supply for the products are fuzzy. In
the proposed SCN model, we suppose that the frst level (leader) and second level
(follower) operate two separate groups of SCN. The leader, who moves frst, deter-
mines quantities shipped to retailers, and then, the follower decides his quantities
rationally. The leader’s objective is to minimize the total transportation costs, and
similarly, the follower’s objective is to minimize the total delivery time of the SCN
and at the same time balancing the optimal order allocation from each source, plant,
retailer and warehouse respectively. The fuzzy goal programming approach has
been used to achieve the highest degree of the membership goals by minimizing the
deviational variables so that most satisfactory or the preferred solution for both the
levels to be obtained. A numerical example is given to demonstrate the proposed
methodology.
Keywords Supply chain network · Multi-objective optimization · Bi-level
programming problem · Trapezoidal fuzzy number · -cut approach · Fuzzy goal
programming
* Srikant Gupta
operation.srikant@hotmail.com
Irfan Ali
irfi.st@amu.ac.in
Aquil Ahmed
aquilstat@gmail.com
1
Department of Statistics and Operations Research, Aligarh Muslim University, Aligarh, UP,
India