Selecting the best responsive option to unexpected orders at the time of capacity-shortage using multi criteria decision models

Abstract

The way orders are accepted or rejected is the most important factor in customer satisfaction and success of make-to-order systems. The incoming orders to such organizations have certain delivery date in which the customer expects the order to be fulfilled and delivered. In some cases, unexpectedly increased orders exceed the existing capacity for on time fulfillment. In addition to rejection of order, as a typical choice, other options like outsourcing and capacity expansion are available to compensate for capacity shortage and deliver incoming orders according to schedule. However, each of the proposed options is superior in one or more criteria and so selecting the best one is not simply possible. The main goal of this study is to provide managers with a comprehensive, systematic, and applicable approach to evaluate and select the best of the existing options. For this purpose, a model comprised of some multi-criteria techniques is delivered. Our proposed model is a blend of FAHP and FTOPSIS methods. In this model, FAHP is first used to determine the weight of criteria and then Fuzzy-TOPSIS (FTOPSIS) is employed to rank the options. Finally, the proposed model is applied on an actual case to assess and examine its efficiency.

Keywords

• Order acceptance
• Fuzzy set theory
• FAHP
• FTOPSIS
• Decision Making