Fuzzy Goal Programming Approach for Integrating Production and Distribution Problem in Milk Supply Chain

Abstract

In this paper, a bi-objective mixed integer programming model is proposed to deal with the production-distribution problem found in a dairy company in Morocco. The supply chain containing three echelons: multi-sites, multi-distribution centers and multi-customers. The model seeks to integrate two conflicting simultaneous objectives: maximizing benefit by considering the shelf life of products and the total cost (quantitative objective), including production, storage, and distribution, as well as maximizing the service level (qualitative objective), which relates to providing satisfactory services to customers. This is subject to several technological constraints that typically arise in the dairy industry, such as sequence-dependent changeover time, machine speed and storage capacity. Due to imprecise aspiration levels of goals, an interactive approach is proposed based on fuzzy goal additive variants to find an efficient compromise solution. Numerical results are reported to demonstrate the efficiency and applicability of the proposed model.