Managing Fuel Coal Supply Chains With Multiple Objectives and Multimode Transportation

Abstract

Power companies require sophisticated tools to manage fuel-coal supply chains which include multiple suppliers coal contracts and multimode transportation routes. In this article a multi-objective model which is integrated with multi-attribute decision-making for the selection of suppliers transportation routes and coal orders is developed. The model simultaneously optimizes multiple objectives such as minimizing purchase costs transportation costs and ash output and it also presents a decision framework on the selection of suppliers transportation routes and coal products that will achieve these objectives. The network and capacity constraints of suppliers and transportation routes are included in the model. The study utilizes multi-objective linear programming and well-known decision rules such as minimax maximin and compromise programming and Analytic Hierarchy Process is employed to determine preferred solutions. The methodology for the solution is illustrated via a case study and an alternative evaluation process is presented. The study demonstrates that the model can be used by power companies to find desired solutions as it provides an opportunity for the inclusion of the preferences of decision-makers and adjustments of the weights for each objective.