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A fuzzy bi-objective MILP approach to integrate sales, production, distribution and procurement planning in a FMCG supply chain

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Abstract

Sales and operations are the heart of today’s businesses, and the decisions made in these areas will intensively affect the financial performance, operational efficiency and service level of the whole organization. This manuscript is going to develop three multiobjective fuzzy mixed integer linear programming models of sales and operations planning process. Then, the performance of the fully integrated fuzzy model is compared to the similar crisp model, in terms of total supply chain’s cost and customer service level. All the models are developed for a multisite manufacturing company, which is coping with different raw material suppliers and third-party logistics, distribution centers and customers with a wide range of product families. Finally, the models are applied to a real case in a FMCG manufacturing company in Iran. The final results approve the superiority of the fuzzy model over the crisp one. Furthermore, a sensitivity analysis is carried out to analyze the effect of some key factors on the benefits of the SC planning integration.

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Funding

This study was not funded by any profit or nonprofit organization.

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Authors and Affiliations

  1. Operations and Production Management Industrial Management Department, University of Mazandaran, Babolsar, Iran

    Yaser Nemati

  2. Industrial Engineering Industrial Engineering Department, Amirkabir University of Technology, Tehran, Iran

    Mohammad Hosein Alavidoost

Authors
  1. Yaser Nemati
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  2. Mohammad Hosein Alavidoost
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Corresponding author

Correspondence to Yaser Nemati.

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Conflict of interest

As authors of the manuscript, we, Yaser Nemati and Mohammad Hosein Alavidoost, declare that we have no conflict of interest to each other.

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This article does not contain any studies with human participants performed by any of the authors.

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Informed consent was obtained from all individual participants included in the study.

Additional information

Communicated by V. Loia.

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Nemati, Y., Alavidoost, M.H. A fuzzy bi-objective MILP approach to integrate sales, production, distribution and procurement planning in a FMCG supply chain. Soft Comput 23, 4871–4890 (2019). https://doi.org/10.1007/s00500-018-3146-5

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  • DOI: https://doi.org/10.1007/s00500-018-3146-5

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