Prioritizing and Determining the Optimum Compositionof Products using Fuzzy Multi-criteria Decision MakingApproach

Abstract: Today, due to the increasing complexity of the environment and the many variablesinfluencing the decision making process of the managers and furthermore the need for reducingthe operating costs of organizations that are considered as one of the major concerns ofmanagers, optimization of production processes of all factories and production institutes havebeen in the spotlight of the managers. To reduce this complexity, the use of appropriate tools formonitoring and analyzing costs and appropriate policies in this regard, is of particular importance .Objective of this project is to use Fuzzy multiple-criteria decision-making methods to prioritize andoptimize product composition of a factory. To achieve this goal, first the factors influencing theprioritization of products through observation, library research and interviews with experts wereidentified then importance weights of criteria was obtained by analytic hierarchy process method.In latter stage, using Fuzzy TOPSIS method and the obtained weights from the previous stepproducts were prioritized. Then to obtain the optimum composition of production, through placingthe similarity index for each product instead of an objective function coefficient a linear programaffected by restrictions of production, has been offered and the optimum composition ofproduction is obtained. Eventually the obtained answers have been compared with the currentsituation through the problem solving model (favorable situation).

Keywords:

optimum composition of production , Fuzzy analytic hierarchy process , Fuzzy TOPSIS , a linear programming model