Development of simulation-based AHP-DPSO algorithm for generating multi-criteria production-distribution plan

  • Varthanan P
  • Murugan N
  • Kumar G
 et al. 
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Abstract

Integrated production-distribution plan considering three major
objectives, viz., total cost minimization, change in labor level
reduction, and underutilization minimization, is developed for a
renowned bearing manufacturing industry in India. The total cost
minimization objective minimizes the regular, overtime, and outsourced
production costs along with inventory holding, backorder,
hiring/laying-off, and trip-wise distribution costs. The multi-criteria
model is solved using a novel simulation-based analytic hierarchy
process (AHP)-discrete particle swarm optimization (DPSO) algorithm. The
solutions of the AHP-DPSO algorithm are verified using the
AHP-binary-coded genetic algorithm solutions. The proposed
simulation-based AHP-DPSO solutions are found to be superior. Demand is
assumed to vary uniformly, and the simulation-based AHP-DPSO algorithm
is used for obtaining the best production-distribution plan that serves
as a trade-off between holding inventory and backordering products. In
addition to bearing manufacturing industry dataset, two other test
datasets are also solved.

Author-supplied keywords

  • Analytic hierarchy process
  • Binary-coded genetic algorithm
  • Discrete particle swarm optimization algorithm
  • Production-distribution plan
  • Simulation

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