Multiobjective optimisation of production, distribution and capacity planning of global supply chains in the process industry

The performance of a supply chain should usually be measured by multiple criteria. We address production, distribution and capacity planning of global supply chains considering cost, responsiveness and customer service level simultaneously. A multiobjective mixed-integer linear programming (MILP) approach is developed with total cost, total flow time and total lost sales as key objectives. Also, two strategies to expand the formulation plants’ capacities are considered in the model. The ε-constraint method and lexicographic minimax method are used as solution approaches to tackle the multiobjective problem. Finally, a numerical example is investigated to demonstrate the applicability of the proposed model and solution approaches.

► We model production, distribution, capacity planning of a global supply chain. ► Three objectives are considered: cost, responsiveness and customer service level. ► We present a mixed integer linear programming model and adapt two solution methods. ► The ε-constraint method generates a set of Pareto-optimal solutions. ► The lexicographic minimax method finds a fair solution on the Pareto-optimal curve.