Multi-criteria Decision Making in Supply Chain Management

A special issue of Systems (ISSN 2079-8954). This special issue belongs to the section "Supply Chain Management".

Deadline for manuscript submissions: 31 January 2025 | Viewed by 22969

Special Issue Editors


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Guest Editor
Marketing, Operations and Analytics Department, The Bill Munday School of Business, St Edward’s University, Austin, TX 78704, USA
Interests: supply chain management; pricing; game theory; inventory management; dynamic programming; MCDM; MODM

E-Mail Website
Guest Editor
Marketing, Operations, and Analytics Department, Bill Munday School of Business, St. Edward's University, Austin, TX 78704, USA
Interests: information sharing; operations management; supplier selection; dynamic programming; inventory management; mathematical modeling; decision making and analysis; forecasting

Special Issue Information

Dear Colleagues,

The supply chain is the sequence of companies and their processes of transforming raw materials into final goods and/or services. Effective collaboration between supply chain companies dramatically reduces their inventories and related costs, which results in faster practices, customer satisfaction, etc. Successfully performing supply chain collaboration concerns multiple criteria such as inventory and production costs, environmental impact, and customer satisfaction. They contribute to the added complexity of these decisions and escalate the need for the development of advanced decision-making tools. Multi-criteria decision making (MCDM) is a systematic procedure used by supporting decision makers in these situations. MCDM problems are divided in two subsets: multi-attribute decision making (MADM) and multi-objective decision making (MODM) problems. MADM problems refer to determining the ranking of alternatives in the presence of multiple attributes. However, MODM problems involve the design of alternatives, thereby optimizing the decision-makers’ objectives.

This Special Issue considers all the multi-attribute decision making techniques applied to supply chain management problems.

The topics include, but are not limited to:

  • Multi-criteria decision making for logistics and supply chains;
  • Multi-criteria decision making for sustainable logistics and supply chains;
  • Fuzzy and/or stochastic multi-criteria decision making for logistics and supply chains;
  • Multi-criteria decision making for inventory management;
  • Multi-criteria decision making for product development;
  • Supplier selection and evaluation.

Dr. Omid Jadidi
Dr. Fatemeh Firouzi
Guest Editors

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Published Papers (13 papers)

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Research

25 pages, 2029 KiB  
Article
Differential Games of Supply Chain on Consideration of Low-Carbon Reference Effect under Different Carbon Quota Allocation Methods
by Anbo Wu, Ronglin Zhang, Yue Sun, Linhui Sun, Shuhan Wang and Xinping Wang
Systems 2024, 12(9), 371; https://doi.org/10.3390/systems12090371 - 15 Sep 2024
Cited by 1 | Viewed by 920
Abstract
The carbon quota allocation method serves as the foundation for the design of the carbon trading mechanism, which has a significant impact on supply chain production decisions and the operational efficiency of the carbon trading market. To analyze the behavioral decision problem of [...] Read more.
The carbon quota allocation method serves as the foundation for the design of the carbon trading mechanism, which has a significant impact on supply chain production decisions and the operational efficiency of the carbon trading market. To analyze the behavioral decision problem of supply chain members under different carbon quota allocation methods, the low-carbon reference effect is introduced to characterize the effect of consumers’ low-carbon preference on market demand. On this basis, three differential game models are constructed, namely, no emissions penalty, trading under the grandfathering principle, and trading under the benchmarking principle. The results indicate that the implementation of carbon trading policies enhances consumers’ low-carbon reference levels, the carbon emission reduction levels of manufacturers, and the low-carbon publicity levels of retailers. Moreover, the enhancement of the low-carbon reference effect becomes a positive driver of profit growth. Manufacturers are observed to make more efforts in carbon reduction under the benchmarking principle compared to the grandfathering principle. In contrast, the level of low-carbon publicity by retailers remains unchanged. The above findings can provide a scientific basis for the decision-making of emission reduction in low-carbon supply chain enterprises, which has certain theoretical significance. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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31 pages, 3632 KiB  
Article
A Bi-Objective Model for the Multi-Period Inventory-Based Reverse Logistics Network: A Case Study from an Automobile Component Distribution Network
by Mohammad Khalilzadeh, Jurgita Antucheviciene and Darko Božanić
Systems 2024, 12(8), 299; https://doi.org/10.3390/systems12080299 - 12 Aug 2024
Viewed by 1235
Abstract
Supply chain management and distribution network design has attracted the attention of many researchers in recent years. The timely satisfaction of customer demands leads to reducing costs, improving service levels, and increasing customer satisfaction. For this purpose, in this research, the mathematical programming [...] Read more.
Supply chain management and distribution network design has attracted the attention of many researchers in recent years. The timely satisfaction of customer demands leads to reducing costs, improving service levels, and increasing customer satisfaction. For this purpose, in this research, the mathematical programming models for a two-level distribution network including central warehouses, regional warehouses, and customers are designed so that several products with definite demands in multiple periods are distributed from central warehouses to customers. In this problem, two objective functions are considered. The first objective function seeks to minimize the costs of establishment, transportation, inventory, and shortage, and the second objective function attempts to maximize the satisfaction level corresponding with the supply rate of different goods for numerous customers. The presented models include the basic model, inventory-based model, multi-period inventory-based model, and multi-period inventory-based reverse logistics model. The validation and applicability of the proposed models were demonstrated by implementation in a real case study of the automobile industry. The LINGO software 20.0 was used to solve the models. The results show that incorporating the inventory management policies into the basic model and converting from a single-period to a multi-period reverse logistics model will significantly increase company profitability and customer satisfaction. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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22 pages, 1740 KiB  
Article
Impact of Quality Investment and Vertical Shareholding in Hybrid Competing Supply Chains
by Shouyao Xiong and Tao Zhou
Systems 2024, 12(8), 292; https://doi.org/10.3390/systems12080292 - 9 Aug 2024
Viewed by 1027
Abstract
Product quality is a key factor affecting consumers’ willingness to buy, providing greater advantages to an enterprise than product price. This paper investigates the impact of two factors, price and quality, on the operational decisions of hybrid competing supply chains. Supply chain I, [...] Read more.
Product quality is a key factor affecting consumers’ willingness to buy, providing greater advantages to an enterprise than product price. This paper investigates the impact of two factors, price and quality, on the operational decisions of hybrid competing supply chains. Supply chain I, which consists of a manufacturer and a retailer, is a decentralized structure. Supply chain II, where the manufacturer and retailer are integrated, is a centralized structure. Quality investment and vertical shareholding are introduced into the decentralized supply chain. Models are constructed for three different scenarios, examining whether the manufacturer makes a quality investment and whether the retailer holds shares in the quality investment. By comparing the equilibrium results, solved by the Stackelberg game method, the following conclusions are drawn: (1) Quality investment and shareholding can enhance product quality and price. (2) The retail price in a centralized supply chain is consistently lower than that in a decentralized one, leading to generally higher total profits for centralized supply chain. (3) The total profit of the decentralized supply chain only exceeds that of the centralized ones when the degree of substitution between products is lower than 0.6285 and the quality effort cost factor is within a specific range. While centralized supply chain is generally more advantageous, decentralized supply chain can outperform him under specific conditions. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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35 pages, 3932 KiB  
Article
Low-Carbon Supply Chain Decision-Making and CSR Strategy Evolution Analysis Considering Heterogeneous Consumer Preferences
by Jinghua Zhao, Ruishu Zhang, Zhuang Wang and Shaoyun Cui
Systems 2024, 12(8), 283; https://doi.org/10.3390/systems12080283 - 3 Aug 2024
Viewed by 936
Abstract
Decision-making regarding the low-carbon supply chain, considering corporate social responsibility (CSR) and the heterogeneous preferences of consumers, has become an urgent topic to be explored. This paper explores the decision-making problem of a low-carbon supply chain considering the heterogeneous preferences of consumers under [...] Read more.
Decision-making regarding the low-carbon supply chain, considering corporate social responsibility (CSR) and the heterogeneous preferences of consumers, has become an urgent topic to be explored. This paper explores the decision-making problem of a low-carbon supply chain considering the heterogeneous preferences of consumers under different CSR situations, analyzes the influence of important parameters on each equilibrium solution, compares the size relationship of each equilibrium solution under different CSR situations, and verifies the conclusions obtained through numerical simulation. Then, based on the obtained equilibrium solution, a CSR evolutionary game model of the low-carbon supply chain is constructed, and the evolutionary stability strategies of the two sides on the CSR game are solved. Finally, the evolutionary trajectory of the game system is intuitively presented using a simulation method, and the influence of the main parameters on the evolutionary trends of the two sides is analyzed. The findings are as follows: (1) When both manufacturers and retailers undertake CSR, the retail price and wholesale price are their lowest, while carbon emission reduction, total market demand, manufacturer utility, retailer utility, and supply chain total utility are the highest. (2) When a company undertakes CSR, carbon emission reduction, total market demand, manufacturer utility, retailer utility, and supply chain total utility all increase with the increase in the CSR degree of the company and the ratio of the potential scale of low-carbon consumers to the potential scale of ordinary consumers. (3) The evolutionary stability strategy for both manufacturers and retailers is to undertake CSR. In addition, the initial proportion of manufacturers and retailers that undertake CSR, the low-carbon preference of low-carbon consumers, and the increase in the ratio of the potential scale of low-carbon consumers to the potential scale of ordinary consumers can encourage both members of the supply chain to undertake CSR. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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25 pages, 714 KiB  
Article
The Impact of Digital Technology Innovation on the Supply Chain Position: Micro Evidence from the Chinese New Energy Vehicle Companies
by Hao Wang, Qinyi Han, Tao Ma and Nairong Tan
Systems 2024, 12(8), 272; https://doi.org/10.3390/systems12080272 - 28 Jul 2024
Viewed by 1606
Abstract
With the rapid development of digital technology and the increasing focus on the global supply chain network, it has become a new challenge for international companies to select digital technology innovation projects in an efficient way, so as to improve their supply chain [...] Read more.
With the rapid development of digital technology and the increasing focus on the global supply chain network, it has become a new challenge for international companies to select digital technology innovation projects in an efficient way, so as to improve their supply chain position and competitiveness. Prior works have identified the effects of digital technology adoption on companies’ supply chain positions; however, there has been limited research on the impact of digital technology innovation heterogeneity on companies’ supply chain position and the pathways through which this effect plays out. Hence, based on the global supply chain panel data from Chinese new energy vehicle companies, this study used a two-way fixed-effects model and causal stepwise regression analysis to study the impact of digital technological innovation on companies’ supply chain position and the dynamic mechanisms between them. The empirical results show that all three types of digital technology innovations, in the design and development process, the production and manufacturing process, and the sales and after-sales process, significantly enhance the company’s supply chain position. Further mechanism analysis shows that digital technology innovations enhance the company’s managerial efficiency and profitability mainly by reducing costs and increasing revenues, which ultimately improves the company’s supply chain position. This paper can provide a reference for policy makers to promote the application and development of a company’s digital technology and enhancing the supply chain position. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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25 pages, 2256 KiB  
Article
Facilities Sites Selection Optimization for Food Emergency Logistics to Meet Urgent Demands
by Xiaoqing Zeng, Yanping Chen and Liming Liu
Systems 2024, 12(7), 241; https://doi.org/10.3390/systems12070241 - 5 Jul 2024
Viewed by 1054
Abstract
Effective emergency logistics facility site selection is vital for ensuring prompt and fair food supply during crises. This study tackles the intricate task of choosing optimal sites for emergency food logistics facilities by considering varying urgency levels of needs, uncertain demands, and potential [...] Read more.
Effective emergency logistics facility site selection is vital for ensuring prompt and fair food supply during crises. This study tackles the intricate task of choosing optimal sites for emergency food logistics facilities by considering varying urgency levels of needs, uncertain demands, and potential facility interruptions. A novel weighted Mahalanobis distance–gray relational analysis–TOPSIS method is devised to evaluate demand urgency and guide site selection decisions. The proposed location model aims to minimize total cost and unmet demand while integrating discrete scenario strategies to address interruption events. Leveraging the Social Network Search (SNS) algorithm, the model is solved, and its effectiveness is validated through a case study analysis. The results highlight the accuracy of the urgency level determination method in capturing demand characteristics and the model’s provision of an objective and practical framework for formulating rational facility location strategies. This approach holds significant promise for enhancing the promptness and fairness of food supply assurance during emergencies. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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27 pages, 990 KiB  
Article
Comparative Analysis of Key Success Factors in S&OP: Focusing on Manufacturing and Retail Industry in South Korea
by Sangjun Kim and Kwangsup Shin
Systems 2024, 12(6), 202; https://doi.org/10.3390/systems12060202 - 8 Jun 2024
Viewed by 1182
Abstract
The global supply chain is facing unprecedented challenges due to pandemics, geopolitical tensions, volatile commodity prices, and rapid changes in consumer demand. The Sales and Operations Planning (S&OP) process can be an important solution by integrating supply and demand with business strategy and [...] Read more.
The global supply chain is facing unprecedented challenges due to pandemics, geopolitical tensions, volatile commodity prices, and rapid changes in consumer demand. The Sales and Operations Planning (S&OP) process can be an important solution by integrating supply and demand with business strategy and operational planning. However, previous studies have developed single frameworks or maturity models without considering industry-specific factors, overlooking the structural and operational characteristics of different industries that can have a significant impact on the approach and success factors of S&OP. Therefore, this study identifies and compares the key success factors of S&OP in the manufacturing and retail industries using the Analytic Hierarchy Process (AHP) technique. The results show clear differences in the prioritization of success factors between two industries. In the manufacturing industry, strategic support and leadership were evaluated as the most critical factor, while in the retail industry, operational processes were emphasized. In addition, the relative importance was concentrated on the top-ranked factor in the manufacturing industry, but the relative importance was distributed among several factors in the retail industry. This study provides valuable insights into the critical success factors for S&OP implementation in different industries and offers an understanding of how industry-specific characteristics influence the effectiveness of S&OP strategies. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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16 pages, 785 KiB  
Article
A Procedure for Choosing among Different Solutions to the Multi-Criteria Supplier Selection Problem along with Two Solution Methods
by Omid Jadidi, Fatemeh Firouzi and John S. Loucks
Systems 2024, 12(6), 191; https://doi.org/10.3390/systems12060191 - 30 May 2024
Viewed by 650
Abstract
Supplier selection is a multi-attribute decision-making (MADM) problem that is affected by often-conflicting factors (e.g., price, quality, and delivery performance). If a supplier selection problem (SSP) is solved by different MADM methods, different solutions are likely to be obtained. This can be advantageous [...] Read more.
Supplier selection is a multi-attribute decision-making (MADM) problem that is affected by often-conflicting factors (e.g., price, quality, and delivery performance). If a supplier selection problem (SSP) is solved by different MADM methods, different solutions are likely to be obtained. This can be advantageous for decision makers because they have a good choice of alternative solutions. However, it brings about the need for a comparison approach for choosing the solution that best fits the decision maker’s purchasing strategy. So, decision makers may have two needs: (1) a good choice of alternative solutions and (2) a comparison approach. To help decision makers with the first need, we make two contributions to the literature on SSPs. For one, we formulate an integer nonlinear optimization model that evaluates and sorts the suppliers based on similarity to the ideal solution. For another, we make enhancements to the existing Factor Rating (FR) method. For the second need, we propose a comparison procedure to rank different solutions by measuring their relative closeness, both Rectilinear and Euclidean, to the ideal solution. The first two proposed methods along with the existing FR and TOPSIS (Technique for Order of Preference by Similarity to Ideal Solution) methods are applied to a set of test SSPs, and then, the comparison procedure is used to identify the ‘superior’ method for each test problem. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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23 pages, 3527 KiB  
Article
Fresh Produce Ordering, Pricing and Freshness-Keeping Decisions with Call Option Contracts and Spot Markets
by Deng Jia, Xingyu Chen and Chong Wang
Systems 2024, 12(5), 150; https://doi.org/10.3390/systems12050150 - 26 Apr 2024
Viewed by 1179
Abstract
Considering the characteristics of both quality and quantity losses in fresh produce as well as the existence of spot markets, optimal retailer ordering, pricing, and freshness-keeping decisions through the single ordering policy (firm ordering only or option ordering only) and the mixed ordering [...] Read more.
Considering the characteristics of both quality and quantity losses in fresh produce as well as the existence of spot markets, optimal retailer ordering, pricing, and freshness-keeping decisions through the single ordering policy (firm ordering only or option ordering only) and the mixed ordering policy (firm ordering and option ordering simultaneously) are constructed based on option contracts and analyzed for the retailer under different ordering policies. The results show that there is a unique optimal pricing, ordering, and freshness-keeping decision under all three ordering policies, but there is no joint decision. The optimal freshness-keeping and retail price under the mixed ordering policy are lower than those under the option ordering only but higher than those under the firm ordering only. When only a single order can be placed, the retailer’s optimal ordering policy is determined by demand risk. When all three ordering policies are available, the optimal ordering policy for the retailer is the mixed ordering policy. A spot market will weaken the role of option contracts in mitigating supply chain risks, and the larger the risk, the more significant the role of the spot market. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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21 pages, 6099 KiB  
Article
Game Models for Ordering and Channel Decisions of New and Differentiated Remanufactured Products in a Closed-Loop Supply Chain with Sales Efforts
by Niu Gao, Linchi Qu, Yuantao Jiang and Jian Hou
Systems 2024, 12(3), 67; https://doi.org/10.3390/systems12030067 - 20 Feb 2024
Cited by 2 | Viewed by 1499
Abstract
Environmental responsibility and economic benefits have promoted the development of closed-loop supply chains (CLSCs), and shortages and channels are considered to be two important issues in a CLSC. This paper explores the ordering and channel decisions in a CLSC with new and differentiated [...] Read more.
Environmental responsibility and economic benefits have promoted the development of closed-loop supply chains (CLSCs), and shortages and channels are considered to be two important issues in a CLSC. This paper explores the ordering and channel decisions in a CLSC with new and differentiated remanufactured products; considers the price and sales-effort-dependent demands, as well as the proportion of emergency orders determined by emergency order costs and backorder losses; and establishes integrated and decentralized CLSC game models. We introduce a stochastic sales effort, which affects two types of products. The numerical results show that sales effort and the order quantity of new and remanufactured products exhibit concave and convex functions, respectively. The upper limit of sales effort has a greater impact on supply chain decisions. High sales efforts can serve as a means of coordinating dispersed supply chains. Moreover, in different cases, the decisions of an integrated channel are better than those of a decentralized channel. Finally, whether the supply chain adopts an emergency order strategy depends on the relative cost of emergency orders and out-of-stock costs. According to this research, some management insights are also provided. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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21 pages, 3469 KiB  
Article
Research on Supply Chain Coordination Decision Making under the Influence of Lead Time Based on System Dynamics
by Mingli Zhang, Yanan Wang and Yijie Zhang
Systems 2024, 12(1), 32; https://doi.org/10.3390/systems12010032 - 18 Jan 2024
Viewed by 2551
Abstract
Supply chain coordination has been a research hot spot in supply chain management. This paper constructs a secondary supply chain system. Taking the abatement of the bullwhip effect and the double marginal effect as the coordination objective, a simulation study of supply chain [...] Read more.
Supply chain coordination has been a research hot spot in supply chain management. This paper constructs a secondary supply chain system. Taking the abatement of the bullwhip effect and the double marginal effect as the coordination objective, a simulation study of supply chain decision coordination was conducted using system dynamics. First, by controlling the lead time, it was found that in the decentralized decision-making model, the profit of the supplier and the whole supply chain increases with the shortening of the lead time, and vice versa for the retailer. In the centralized decision-making model with the addition of information sharing and contract, it was found that the retailer’s profit is consistent with the trend of the supplier and the supply chain as a whole, and the supplier’s profit is lower than that of decentralized decision making in the pre-cooperation period. In addition, it is also found that adjusting the contract parameters can effectively improve the situation. Finally, the above models were analyzed for supply chain coordination decisions based on two scenarios: “cooperative stability” or “balance of effects”. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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17 pages, 1013 KiB  
Article
Predicting the Use of Chatbots for Consumer Channel Selection in Multichannel Environments: An Exploratory Study
by Ionica Oncioiu
Systems 2023, 11(10), 522; https://doi.org/10.3390/systems11100522 - 20 Oct 2023
Viewed by 2345
Abstract
Online consumers are increasingly looking for more convenient ways to purchase products and services, and chatbots are becoming increasingly popular in multichannel environments due to their ability to provide an efficient service. In this context, managing digital complexity with the help of artificial [...] Read more.
Online consumers are increasingly looking for more convenient ways to purchase products and services, and chatbots are becoming increasingly popular in multichannel environments due to their ability to provide an efficient service. In this context, managing digital complexity with the help of artificial intelligence and supporting decisions in a multichannel context is an appealing perspective for the retailer, who must find the right strategy to win and keep customers online. The present empirical study aims to better understand consumer behaviour in the multichannel environment in the context of four categories of products and services (retail banking, mobile communications, fashion, and consumer electronics) from the perspective of identifying determinants of channel selection when the consumer uses chatbots. Data were collected from 936 respondents with multichannel retail experience to conduct an empirical investigation on social media platforms, including Twitter, Facebook, and Instagram; these data were then analysed using structural equation modelling (SEM). We found that the online consumer’s multichannel behaviour was not only a reality in the field of broad purchasing decisions but already a norm, and consumers had good reasons to use more channels in the context of chatbots. Research results suggest that chatbots can represent a decision-making aid for managers in retail companies who want to develop an efficient and optimal logistics service strategy in multichannel environments. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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19 pages, 2390 KiB  
Article
Global Industrial Chain Resilience Research: Theory and Measurement
by Li Ma, Xiumin Li and Yu Pan
Systems 2023, 11(9), 466; https://doi.org/10.3390/systems11090466 - 6 Sep 2023
Cited by 4 | Viewed by 4154
Abstract
Global industrial chain resilience refers to the capability of industrial chains, on a global scale, to maintain or restore their normal operations and value-creating ability in the face of various risks and uncertainties. This resilience is crucial for addressing crises, promoting economic growth, [...] Read more.
Global industrial chain resilience refers to the capability of industrial chains, on a global scale, to maintain or restore their normal operations and value-creating ability in the face of various risks and uncertainties. This resilience is crucial for addressing crises, promoting economic growth, and upholding national security. However, there is currently a lack of unified standards and methods for measuring and enhancing global industrial chain resilience. This study constructs a global industrial chain production model in a multi-country and multi-stage open economy context. It utilizes data from the 1990–2021 Eora MRIO (Multi-Regional Input–Output) dataset to analyze the formation, measurement, and influencing factors of global industrial chain resilience. The research findings indicate that since 2010, the disparity in industrial chain resilience between different countries has gradually widened. Manufacturing plays a pivotal role in maintaining industrial chain stability. Additionally, factors such as input costs and technological levels have been found to positively impact the enhancement of global industrial chain resilience. Therefore, this study provides theoretical and empirical support for exploring and improving global industrial chain resilience, offering valuable guidance for policymakers and entrepreneurs. Full article
(This article belongs to the Special Issue Multi-criteria Decision Making in Supply Chain Management)
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