"Multi-Criteria Optimization for Achieving Strategic Fit in Supply Chain (A Pareto Optimality Based Model)"

Modem competitive scenario necessitates the achievement of strategic fit between competitive and supply chain strategies, for effective and economic response in filling customer's orders, by a manufacturing enterprise. Towards this end, all the decisions (strategic, planning and operational) with regard to supply chain ought to be in conformity with strategic fit zone along cost efficiency and responsiveness axes. As the situation warrants optimal decisions relating to supply chain capabilities balancing two conflicting objectives i.e. maximizing cost-efficiency and responsiveness, a model is proposed in this paper in the context of product mix (strategic) decision problem. The proposed model strives to find the best compromise solution in multi criteria (multi-objective) decision situations, working within a set of constraints, through Pareto optimality technique, utilizing minimum of maximum deviations approach. For the sake of simplicity, the product mix problem is illustrated in linear programming formulation of objective function and constraints. However, without loss of generality, the model is adaptable for application in multi criteria decision situations involving non-linear programming formulations, yielding optimal strategic supply chain decisions within the strategic fit zone along cost-efficiency and responsiveness frontiers. Keywords-Benchmarking, Logistics, Optimization, Evaluation Tools/Techniques