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AHP integrated MILP approach to minimize transportation cost to prioritize distribution requirements

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dc.contributor.author Madushika, I.K.
dc.contributor.author Wijayanayake, A.
dc.date.accessioned 2018-08-15T06:56:43Z
dc.date.available 2018-08-15T06:56:43Z
dc.date.issued 2018
dc.identifier.citation Madushika,I.K. and Wijayanayake,A. (2018). AHP integrated MILP approach to minimize transportation cost to prioritize distribution requirements. International Research Conference on Smart Computing and Systems Engineering - SCSE 2018, Department of Industrial Management, Faculty of Science, University of Kelaniya, Sri Lanka. p.126. en_US
dc.identifier.uri http://repository.kln.ac.lk/handle/123456789/19016
dc.description.abstract Customer satisfaction can be considered as the most important factor for any business as it is tightly linked to revenue and determines the company’s growth and the sustainability. Further it is the leading indicator of customer repurchases and loyalty. Final outcome of the effective supply chain (SC) management is to make the customer loyal and if failed it would result to transfer the customer towards the competitor. Understanding this importance, research in supply chain management (SCM) has grown significantly in recent years. Many organizations have identified that customer satisfaction (CS) and the SC cost are linked and it is impossible to optimize both at the same time. Many studies have been done under different situations to minimize transportation cost (TC) as it ultimately reduces a tremendous amount of SC cost. The need for a reliable approach to optimize customer satisfaction while minimizing the transportation cost has been raised in many occasions as improving customer satisfaction is a goal sought by many businesses in the logistic industry. This requirement becomes critical when the distributor has to select a set of customer orders to be delivered when the supply is less than the demand. Therefore, the objective of this study was to develop a model to find a way to optimally satisfy the customer orders, while minimizing the transportation cost. As a result, a customer focused approach is presented by incorporating Analytic Hierarchy Process (AHP) and then employing a mixed integer linear programming (MILP) model to find the optimal solution. The proposed model addresses customer satisfaction while minimizing the transportation costs en_US
dc.language.iso en en_US
dc.publisher International Research Conference on Smart Computing and Systems Engineering - SCSE 2018 en_US
dc.subject Analytic Hierarchy Process en_US
dc.subject Customer satisfaction en_US
dc.subject Logistics en_US
dc.subject Supply chain management en_US
dc.subject Transportation cost en_US
dc.title AHP integrated MILP approach to minimize transportation cost to prioritize distribution requirements en_US
dc.type Article en_US


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