Solving Multi-Objective Manufacturing Problem with Demand Leakage, Uniform Fuzzy Demand and Sales

This paper focuses on a manufacturing system which produces a product in two grades – grade I and grade II. The manufacturing system under consideration also results into defective items which are further repaired and are sold in the secondary market. The price of grade I product is higher than that for grade II product because of the quality difference. The paper also considers demand leakage for the product of grade I which means that the some of the customers willing to pay for product of grade I, actually purchases product of grade II. The number of unsold units for both the grades of the product is sold at a giveaway price. Both the demand and sale are assumed to be fuzzy in nature. The purpose of this research study is to study the behavior of the system under demand leakage and other mentioned conditions. For this purpose, a three-objective problem has been proposed and Nondominated Sorting Genetic Algorithm – II (NSGA-II) has been applied to study the behavior of the proposed problem. The joint variations of all the objective values have been observed and analyzed. A numerical example shows the applicability of the proposed solution methodology.