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Network DEA-based biobjective optimization of product flows in a supply chain

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Abstract

This paper deals with planning the product flows along a supply chain (SC) in which there are product losses in the nodes and in the arcs. Given the demand by each retailer, appropriate quantities to be procured from the different suppliers must be decided and the routing of the product along the SC must be determined. Care must be taken because, due to losses, the amount of product that will be finally available at the retailers is lower than the amount of product procured. The objective is twofold: minimizing total costs and minimizing product losses. The proposed approach leverages the existence of data on the flows in previous periods. With those observed flows, a Network Data Envelopment Analysis technology is inferred which allows the computing of any feasible operating point. The resulting biobjective optimization problem can be solved using the weighted Tchebycheff method.

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Acknowledgements

This research was carried out with the financial support of the Spanish Ministry of Science Grant DPI2013-41469-P and the European Regional Development Fund (ERDF).

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Authors and Affiliations

  1. Department of Industrial Management, University of Seville, Seville, Spain

    Sebastian Lozano

  2. Escuela Politécnica de Ingeniería, Universidad de Oviedo, Gijón, Spain

    Belarmino Adenso-Diaz

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  1. Sebastian Lozano
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  2. Belarmino Adenso-Diaz
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Correspondence to Belarmino Adenso-Diaz.

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Lozano, S., Adenso-Diaz, B. Network DEA-based biobjective optimization of product flows in a supply chain. Ann Oper Res 264, 307–323 (2018). https://doi.org/10.1007/s10479-017-2653-6

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  • DOI: https://doi.org/10.1007/s10479-017-2653-6

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