A methodology for cost versus service trade-offs in wholesale location-distribution using mathematical programming and analytic hierarchy process

A multicriteria approach is proposed to wholesale procurement and distribution problems using 3 performance measures: cost, delivery time and customer service rating. Service rating is a composite measure of customer satisfaction in regard to overall quality of services received. The solution method...

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Bibliographic Details
Published inJournal of business logistics Vol. 18; no. 2; p. 77
Main Authors Tyagi, Rajesh, Das, Chandrasekhar
Format Journal Article
LanguageEnglish
Published Hoboken Blackwell Publishing Ltd 01.07.1997
Subjects
Costs
Customer services
Linear programming
Logistics
Mathematical programming
Order processing
Quality of service
Ratings & rankings
Studies
Technical support
Warehouses
Wholesale
Wholesalers
Wholesaling
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Summary:A multicriteria approach is proposed to wholesale procurement and distribution problems using 3 performance measures: cost, delivery time and customer service rating. Service rating is a composite measure of customer satisfaction in regard to overall quality of services received. The solution methodology is a 2-stage process for generating and evaluating various alternatives. A unique feature of the proposed methodology is that it allows predetermined amounts of trade-offs between the 3 performance measures within a framework of priorities. A mixed-integer linear programming model is developed to generate the alternatives, which are then evaluated using the analytic hierarchy process.
ISSN:0735-3766
2158-1592