Bi-criterion procedures to support logistics decision making: cost and uncertainty

Willem A. Rijpkema, Eligius M.T. Hendrix, Roberto Rossi

Research output: Contribution to journalArticlepeer-review

Abstract

In practical decision making, one often is interested in solutions
that balance multiple objectives. In this study we focus on generating
efficient solutions for optimization problems with two objectives and a
large but finite number of feasible solutions. Two classical approaches
exist, being the constraint method and the weighting method, for
which a specific implementation is required for this problem class.
This paper elaborates specific straightforward implementations and
applies them to a practical allocation problem, in which transportation
cost and risk of shortage in supplied livestock quality are balanced.
The variability in delivered quality is modelled using a scenario-based
model that exploits historical farmer quality delivery data. The behaviour
of both implementations is illustrated on this specific case,
providing insight in i.) the obtained solutions, ii.) their computational
efficiency. Our results indicate how efficient trade-offs in bi-criterion
problems can be found in practical problems.
Original languageEnglish
JournalJournal of the Operational Research Society
Early online date10 Jun 2015
DOIs
Publication statusPublished - 2015

Keywords

  • Multi-objective optimization
  • allocation problems
  • scenario-based modelling
  • constraint method
  • weighting method
  • stochastic programming

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