A goal programming approach in order to minimize logistic costs and maximize service level in supply chain

Abstract

Performance of supply chain usually is measured through multiple-criteria. In this paper, an integrated model is proposed to plan a supply chain with three-echelons of supply, production, and distribution considering both logistic costs and service level, concurrently. A mixed-integer linear mathematical programming model with two objective functions, including minimizing logistic costs, and maximizing service level is developed. Goal programming method is used to solve the proposed multi-objective mathematical programming. Finally a real case study is analyzed in order to check the applicability of proposed model and the solution approach

Keywords

• : integrated planning
• supply chain
• multiple-criteria decision making
• goal programming model