Abstract
Goal Programming (GP) is combined with the Analytic Hierarchy Process (AHP) to determine optimal plant and distribution centre locations in a supply chain with special focus on the operational efficiencies of the Distribution Centres (DCs). The combined GP-AHP model incorporates multiple conflicting objectives as demanded by the decision process. The AHP is used to handle the non-cost criteria, aspiration levels and to find the relative weights of multiple objectives in GP. We illustrate the combined approach with an example to highlight its usage in solving other similar complex multi-objective decision problems as well.
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