Multi-Objective Model of Supply Chain with the Preservation of Balance between Product Quality and Cost Evaluation

Abstract

In the global competition of the current age, high-quality products should be supplied according to demand of customer in the shortest time possible. Accordingly, Supply Chain Management (SCM) is an important issue, since meeting needs and interests of customers would not only have done by the last entity attached to customer that is final product, but also by upstream suppliers. At the present study, a three-level planning is developed, which is aimed in optimizing two contradictory goals and has problem conflicts including 1- minimization of costs and 2- maximization of total value production that is considered as the qualitative target function in proposed model and means maximization of quality. Problem formulation is done to present a more realistic model. For this purpose, in this study, quality is depended not only on raw materials, but also on experience and efficiency of operator.