Zoran Babić

Ranking of enterprises based on multicriterial analysis

This paper deals with the ranking of enterprises according to the achieved level of business efficiency using the PROMETHEE method and analytic hierarchy process (AHP). The PROMETHEE method is used for final ranking and AHP to determine the importance of criteria. The main purpose of this work is to present the methodology which at every moment can answer the question about financial standing of a particular enterprise. The possibility of the multicriterial analysis in efficiency assessing as well as its use in deepening understanding of the complex nature of the notion of efficiency will be presented.

The use of the PROMETHEE method in the location choice of a production system

Abstract The choice of location is often one of the most important decisions usually taken in the procedure of building any production system. This paper considers the problem of location choice for such production systems where the basic and additional location factors can be identified. The basic location factors are transportation costs, production costs and duration of transport. The additional factors are bottleneck time, building costs, infrastructure costs, labour costs, weather conditions, expansion possibility and transportation po possibilities. The importance of the basic location factorswill be solved by the use of a parametric approach for the multicriterial transportation problem and in this way the set of all efficient solutions will be found. After that the location choice (among these efficient solutions) will be found by the use of the PROMETHEE method which takes into account the above mentioned additional location factors.

Vendor selection and supply quantities determination in a bakery by AHP and fuzzy multi-criteria programming

One of the possible conceptions for the survival in a turbulent world market is a chain cooperation among the producer, his suppliers and customers, according to the concept of supply chain management. The problem of vendor selection and determination of material quantities supplied is one of the most important activities in the supply chain. The purpose of this article is to propose a model for vendor selection and determination of supply quotas in the area of flour supply by using the analytic hierarchy process (AHP) and multi-objective linear programming (LP) model solved by fuzzy LP method, based on the decision-making in a fuzzy environment, and to point to the advantages of the proposed model in comparison to some other vendor selection and supply quantity determination models. The proposed model applied in the concrete problem of vendor selection and determination of supply quotas proved to be very efficient in determining the priority of alternatives, taking into account all the criteria and sub-criteria, as well as in defining criteria weights that express the decision-makers preferences, which allows a simple sensitivity analysis of the obtained solutions.

Multiproduct Vendor Selection with Volume Discounts as the Fuzzy Multi-Objective Programming Problem

Vendor selection in supply chain is a multi-criteria problem that involves a number of quantitative and qualitative factors. This paper deals with a concrete problem of flour purchase by a company that manufactures bakery products. The selection process is driven by the price, reliability and quality objectives of the buyer and is subject to the capacity constraints of the vendors in the situation where all suppliers offer several kinds of flour (multiproduct situation). Vendors often offer quantity discounts, i.e. the purchasing price of flour depends on the quantity ordered. The multiproduct situation complicates the mathematical formulation of the problem and in this context it is much more convenient to consider the discounts of the money volume of business with every vendor. This problem has been solved using an integration of analytic hierarchy process (AHP), weighted sum model (WSM) and fuzzy multi-objective mixed-integer programming to define the optimum quantities among the selected suppliers.

Multicriterial Production Planning by De Novo programming approach

The paper presents possibilities for optimal production plan designing by the application of the De Novo programming approach. Production plan for a real production system is defined taking into account financial constraints and given objective functions.

Comparative analysis of application efficiency of two iterative multi objective linear programming methods (MP method and STEM method)

In this paper we consider a production plan optimization problem for a company that produces textile products. The problem is solved using two iterative methods: a new method based on the cooperative game theory (MP method) and the well-known STEM method. Their application efficiency and the solutions obtained are compared. For this purpose we use four groups of criteria: (1) the general characteristics of the method (2) the criteria from the standpoint of the decision makers, (3) the criteria from the perspective of the analysts, and (4) the ‘economic’ criteria. The analysis indicates that both methods are highly efficient for solving this kind of production plan optimization problems. However, the decision-makers preferred the MP method.

Application of De Novo Programming Approach for Optimizing the Business Process

The linear programming model is sometimes difficult to apply in real business situations due to its assumption of proportionality. This paper shows an example of how to use De Novo programming approach instead of linear programming. In the De Novo programming, resources are not fixed like in linear programming but resource quantities depend only on available budget. Budget is a new, important element of the De Novo approach. Two different production situations are presented: increasing costs and quantity discounts of raw materials. The focus of this paper is on advantages of the De Novo approach in the optimization of production plan for production company which produces souvenirs made from famous stone from the island of Brac, one of the greatest islands from Croatia.

OPTIMIZATION OF PRODUCTION PLAN IN THE METAL INDUSTRY BY THE USE OF DE NOVO PROGRAMMING

Production plan optimization is one of the most important activities of the production companies in theendeavours to ensure competitive advantages. In preparing the production plan numerous factors are necessary tobe included. The problem of creating the production plan is getting more complicated when the production inputsoccur at variable prices. In this paper the application of De Novo programming model is investigated in theproduction plan optimization in the metal industry. The efficiency of the proposed model is examined on the case of acompany that produces metal containers. The obtained results indicate the high application efficiency of the modelbased on De Novo programming in the production plan optimization in the metal producing companies.

Optimization of Industrial Production of Feed Blends as Multiple Criteria Programming Problem

Optimization of industrial production of feed blends in terms of their nutritive value and in terms of economic criteria can be carried out by application of mathematical optimization methods. The benefit of application of these methods is fast and efficient solution for the optimal combination of ingredients considering the nutritive needs of animals and constraints in their availability. Unlike the standard problem of feed where the requirements for basic nutrients have to be met at minimised costs and which is solved mainly by linear programming, the authors introduce also the goals of meal quality where different requirements of decision makers are modelled by multiple-criteria linear programming.

Fabric Cutting as the Multiple Criteria Programming Problem

In this paper authors indicate, by means of a concrete example, that it is possible to apply the method of multiple criteria integer linear programming method in dealing with the problem of determining an optimal plan for fabric cutting optimization. The following are being shown: 1) Selection of the criteria for optimization of fabric cutting, 2) Setting the problem of determining an optimal plan of fabric cutting, 3) Setting the model of multiple criteria linear integer programming in finding solution to a given problem (4) The solutions are obtained applying the methods of weight coefficients and the method of satisfactory goals.