Customer prioritization integrated supply chain optimization model with outsourcing strategies

Iram Mushtaq, Muhammad Umer, Muhammad Attique Khan, Seifedine Kadry

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

Pre-COVID-19, most of the supply chains functioned with more capacity than demand. However, COVID-19 changed traditional supply chains’ dynamics, resulting in more demand than their production capacity. This article presents a multiobjective and multiperiod supply chain network design along with customer prioritization, keeping in view price discounts and outsourcing strategies to deal with the situation when demand exceeds the production capacity. Initially, a multiperiod, multiobjective supply chain network is designed that incorporates prices discounts, customer prioritization, and outsourcing strategies. The main objectives are profit and prioritization maximization and time minimization. The introduction of the prioritization objective function having customer ranking as a parameter and considering less capacity than demand and outsourcing differentiates this model from the literature. A four-valued neutrosophic multiobjective optimization method is introduced to solve the model developed. To validate the model, a case study of the supply chain of a surgical mask is presented as the real-life application of research. The research findings are useful for the managers to make price discounts and preferred customer prioritization decisions under uncertainty and imbalance between supply and demand. In future, the logic in the proposed model can be used to create web application for optimal decision-making in supply chains.
Original languageEnglish
Number of pages16
JournalBig data
Early online date29 Apr 2022
DOIs
Publication statusE-pub ahead of print - 29 Apr 2022

Keywords

  • COVID-19 effect
  • customer prioritization
  • neutrosophic multiobjective optimization
  • outsourcing
  • price discounts
  • uncertain demand

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