Pareto Optimal Solution Selection for a Multi-Site Supply Chain Planning Problem Using the VIKOR and TOPSIS Methods

Abstract

In this paper, a multi-objective, multi-product, multi-period production and transportation planning problem in the context of a multi-site supply chain is proposed. The developed model attempts simultaneously to maximize the profit and to maximize the product quality level. The objective of this paper is to provide the decision maker with a front of Pareto optimal solutions and to help him to select the best Pareto solution. To do so, the epsilon-constraint method is adopted to generate the set of Pareto optimal solutions. Then, the technique for order preference by similarity to ideal solution (TOSIS) is used to choose the best compromise solution. The multi-criteria optimization and compromise solution (VIKOR), a commonly used method in multiple criteria analysis, is applied in order to evaluate the selected solutions using TOPSIS method. This paper offers a numerical example to illustrate the solution approach and to compare the obtained results using TOSIS and VIKOR methods.