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Customer Prioritization Integrated Supply Chain Optimization Model with Outsourcing Strategies.

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Summary

This study introduces a supply chain network design model to manage demand exceeding production capacity post-COVID-19. It optimizes profit and customer prioritization using price discounts and outsourcing strategies under uncertainty.

Keywords:
COVID-19 effectcustomer prioritizationneutrosophic multiobjective optimizationoutsourcingprice discountsuncertain demand

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Area of Science:

  • Operations Research
  • Supply Chain Management
  • Business Analytics

Background:

  • Pre-COVID-19, supply chains typically had excess capacity.
  • The COVID-19 pandemic disrupted supply chains, creating demand that outstripped production capacity.
  • Traditional supply chain models struggle with demand exceeding supply.

Purpose of the Study:

  • To develop a multiobjective and multiperiod supply chain network design model.
  • To incorporate customer prioritization, price discounts, and outsourcing strategies for demand-exceeding-capacity scenarios.
  • To optimize profit and customer prioritization while minimizing time.

Main Methods:

  • A multiperiod, multiobjective supply chain network design was formulated.
  • Customer prioritization, price discounts, and outsourcing were integrated into the model.
  • A four-valued neutrosophic multiobjective optimization method was employed for solving the model.

Main Results:

  • The model effectively addresses situations where demand surpasses production capacity.
  • It provides a framework for managing price discounts and customer prioritization under supply-demand imbalance.
  • A case study on surgical mask supply chains validated the model's applicability.

Conclusions:

  • The research offers valuable insights for managers facing supply chain disruptions and demand volatility.
  • The proposed model aids in making informed decisions regarding price adjustments and customer segmentation.
  • Future work may involve developing a web application for real-time supply chain decision support.