Determining decoupling points in a supply chain networks using NSGA II algorithm

Abstract

Purpose: In the model, we used the concepts of Lee and Amaral (2002) and Tang and Zhou (2009) and offer a multi-criteria decision-making model that identify the decoupling points to aim to minimize production costs, minimize the product delivery time to customer and maximize their satisfaction.

Design/methodology/approach: We encounter with a triple-objective model that meta-heuristic method (NSGA II) is used to solve the model and to identify the Pareto optimal points. The max (min) method was used.

Findings: Our results of using NSGA II to find Pareto optimal solutions demonstrate good performance of NSGA II to extract Pareto solutions in proposed model that considers determining of decoupling point in a supply network.

Originality/value: So far, several approaches to model the future have been proposed, of course, each of them modeled a part of this concept. This concept has been considered more general in the model that defined in follow.  In this model, we face with a multi-criteria decision problem that includes minimization of the production costs and product delivery time to customers as well as customer consistency maximization.