Fuzzy goal programming for material requirements planning under uncertainty and integrity conditions

Abstract

In this paper, we formulate the material requirements planning) problem of a first-tier supplier in an automobile supply chain through a fuzzy multi-objective decision model, which considers three conflictive objectives to optimise: minimisation of normal, overtime and subcontracted production costs of finished goods plus the inventory costs of finished goods, raw materials and components; minimisation of idle time; minimisation of backorder quantities. Lack of knowledge or epistemic uncertainty is considered in the demand, available and required capacity data. Integrity conditions for the main decision variables of the problem are also considered. For the solution methodology, we use a fuzzy goal programming approach where the importance of the relations among the goals is considered fuzzy instead of using a crisp definition of goal weights. For illustration purposes, an example based on modifications of real-world industrial problems is used.