Title: Fuzzy-optimisation-based decision-making support for integrated order allocation, production planning, and inventory control in supply chain management

Authors: S. Solikhin; S. Sutrisno; Abdul Aziz; Purnawan Adi Wicaksono

Addresses: Department of Mathematics, Diponegoro University, Jalan Prof. Soedarto, SH, Tembalang, 50275 Semarang, Indonesia ' Department of Mathematics, Diponegoro University, Jalan Prof. Soedarto, SH, Tembalang, 50275 Semarang, Indonesia ' Department of Mathematics, Diponegoro University, Jalan Prof. Soedarto, SH, Tembalang, 50275 Semarang, Indonesia ' Department of Industrial Engineering, Diponegoro University, Jalan Prof. Soedarto, SH, Tembalang, 50275 Semarang, Indonesia

Abstract: This study proposes a fuzzy-optimisation model to be used as decision-making support for problems associated with order allocation, production planning, and inventory control. The model was used because some parameters in the problems were uncertain and treated as fuzzy variables. It was further optimised to perform two objective functions which include product quantity and total operational cost. Fuzzy-expectation-based programming was applied to make an optimal decision on the quantity of raw materials to be ordered from each supplier as well as to ascertain the quantity of products to be produced and the raw materials and products to be stored in the warehouse. Moreover, numerical experiments were conducted to demonstrate the procedure through which the problem was solved and the results showed the proposed decision-making support system is reliable.

Keywords: fuzzy programming; mathematical optimisation; supply chain management; inventory control.

DOI: 10.1504/IJPM.2023.133135

International Journal of Procurement Management, 2023 Vol.18 No.2, pp.213 - 237

Received: 01 Nov 2021
Accepted: 09 Apr 2022
Published online: 01 Sep 2023 *

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