Solving a multi-objective multi-echelon supply chain logistic design and planning problem by a goal programming approach

The performance of a supply chain should usually be measured by multiple criteria. In this paper, a logistic planning and design problem in a multi-echelon supply chain consisting of suppliers, manufacturers, and distribution centers is introduced. A multi-objective mixed integer mathematical programming model for both decreasing several logistics costs and increasing the service level in supply chain is proposed. Several constraints due to real-world conditions are also considered in the proposed model. Also, a weighted goal programming approach is proposed to solve the multi-objective optimization problem. The efficacy and applicability of the model are illustrated through a numerical example inspired from a real case study in the dairy industry. The results are promising and the proposed model is capable of handling the case study. The parameters of the proposed approach are also analysed using a sensitivity analysis procedure considering several scenarios.