Title: Optimising multi-objective location decisions in a supply chain using an AHP-enhanced goal-programming model

Authors: Sajjad Zahir, Ruhul Sarker

Addresses: Decision Sciences and Information Systems, Faculty of Management, University of Lethbridge, 4401 University Drive, Lethbridge, Alberta, T1K 3M4, Canada. ' School of Information Technology and Electrical Engineering, University of New South Wales at the ADFA, Northcott Drive, Canberra, 2600, Australia

Abstract: Goal Programming (GP) is combined with the Analytic Hierarchy Process (AHP) to determine optimal plant and distribution centre locations in a supply chain with special focus on the operational efficiencies of the Distribution Centres (DCs). The combined GP-AHP model incorporates multiple conflicting objectives as demanded by the decision process. The AHP is used to handle the non-cost criteria, aspiration levels and to find the relative weights of multiple objectives in GP. We illustrate the combined approach with an example to highlight its usage in solving other similar complex multi-objective decision problems as well.

Keywords: AHP; analytical hierarchy process; SCM; supply chain management; distribution centres; multiple objectives; goal programming; multi-objective location decisions; plant locations; operational efficiencies; conflicting objectives; decision making; non-cost criteria; aspiration levels; relative weights; logistics systems; logistics management.

DOI: 10.1504/IJLSM.2010.031980

International Journal of Logistics Systems and Management, 2010 Vol.6 No.3, pp.249 - 266

Published online: 03 Mar 2010 *

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