Supply chain with fuzzy analytic hierarchy process (AHP): A case study

Document Type : Research Paper

Authors

1 Ministry of Higher Education and Scientific Research, Iraq

2 Al-Nahrain University, College of Business Economics, Iraq

Abstract

To achieve real competition in the global market requires the manufacturers to have the ability to meet the needs and demands of their customers, which comes from the optimal planning of the supply chain. In this paper, consideration is given to the supply chain with multi-providers of raw materials, multi-manufacturing locations, multi- centres of selling products to customers in multiple, with instability (fuzzy) of customer demands, holding costs, costs of appointment, retire and training of workforce After building a mathematical model for the supply chain that aims to maximize the net profit and reduce all costs that include production costs, labour, raw materials, storage, transportation, and the cost shortage, the model was improved through a proposal that the decision-maker has a desire to prefer one manufacturing location over another, as the proposal relied on developing a pairwise comparison in the Analytic Hierarchy Process (AHP) when the degree of comparison between factory locations is a fuzzy nature. The results of the proposed model were applied to actual data taken from an industrial organization.

Keywords