Perspectives in multilevel decision-making in the process industry

doi:10.15302/J-FEM-2017049

Front. Eng

2017, Vol. 4

Issue (3) : 256-270 https://doi.org/10.15302/J-FEM-2017049

REVIEW ARTICLE

Perspectives in multilevel decision-making in the process industry

Braulio BRUNAUD, Ignacio E. GROSSMANN(

)

Carnegie Mellon University, Pittsburgh, PA 15213, US

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Abstract

Decisions in supply chains are hierarchically organized. Strategic decisions involve the long-term planning of the structure of the supply chain network. Tactical decisions are mid-term plans to allocate the production and distribution of materials, while operational decisions are related to the daily planning of the execution of manufacturing operations. These planning processes are conducted independently with minimal exchange of information between them. Achieving a better coordination between these processes allows companies to capture benefits that are currently out of their reach and improve the communication among their functional areas. We propose a network representation for the multilevel decision structure and analyze the components that are involved in finding integrated solutions that maximize the sum of the benefits of all nodes of the decision network. Although such task is very challenging, significant research progress has been made in each component of this structure. An overview of strategic models, mid-term planning models, and scheduling models is presented to address the solution of each node in the decision network. Coordination mechanisms for converging the integrated solutions are also analyzed, including solving large-scale models, multiobjective optimization, bi-level programming, and decomposition. We conclude by summarizing the challenges that hinder the full integration of multilevel decision making in supply chain management.

Keywords supply chain optimization enterprise-wide optimization multilevel optimization planning scheduling

Corresponding Author(s): Ignacio E. GROSSMANN

Just Accepted Date: 17 August 2017 Online First Date: 27 September 2017 Issue Date: 30 October 2017

Cite this article:

Braulio BRUNAUD,Ignacio E. GROSSMANN. Perspectives in multilevel decision-making in the process industry[J]. Front. Eng, 2017, 4(3): 256-270.

URL:

https://academic.hep.com.cn/fem/EN/10.15302/J-FEM-2017049
https://academic.hep.com.cn/fem/EN/Y2017/V4/I3/256

Fig.1 Supply chain example

Fig.2 Supply chain decision pyramid

Fig.3 Planning matrix

Fig.4 Supply chain decision network structure

Fig.5 Example of a supply chain decision network structure

Fig.6 Concept of integrated solution as defined in the literature

Fig.7 Product life cycle curve

Fig.8 Site expansion modeling

Fig.9 Supply chain planning network

Fig.10 State-task-network example

Fig.11 Resource-task-network representation of the separation task from Fig.10

Fig.12 UOPSS representation example

Fig.13 Pareto front output from solving a bi-objective problem

Fig.14 Block angular structure with linking variables

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