Production and Inventory management Using Multiple Objective Decision Making

Abstract

Up to the present, the evaluation measures in the production and inventory management have been studied under the pre-condition that the costs for major factors(e.g,. cost of carrying inventory, cost of demand shortage) are given easily, although in practice, it is difficult. The case in which multiple participants have a different viewpoints in production and inventory management has not been studied, in spite of its frequent occurrence. This study suggests a production and inventory model with multiple objectives corresponding to major factors and the related interactive algorithm based on the preference structures of participants. The problem can be solved through a weighting vector generated by an interaction with participants. The concept of equity is also used in order to guarantee the reasonable distribution of group utility in determining the individual relative weights of participants. This study includes the reality of the model and the decision process in the production and inventory management.