Analysing impact of strategies adopted by decision makers on performance parameters of bi-criteria transportation problem

Abstract

The most common methodology adopted for evaluation of optimal transportation schedule is the conventional cost benefit analysis which provides decision makers with a monetary assessment of a transportation schedule. A mechanism is needed to capture the impact of strategy adopted by decision makers in case of bi-criteria transportation problem on the performance parameters like cost and time. In this paper, an algorithm has been proposed to solve bi-criteria transportation problem with the objective of minimising both cost and time which satisfies the constraints of demand and supply. The algorithm also enables one to obtain the optimal transportation schedule by incorporating the decision makers' priority towards cost and time. Consequently, the algorithm provides a scope to evaluate the impact of strategy adopted by decision makers in obtaining the optimal solution on total cost and time of transportation. The algorithm is explained with the help of an elaborate illustration. The result obtained by the proposed algorithm is compared with that suggested by researchers in the past for validation. The impact of variation in decision maker's strategy is assessed in terms of percentage change in total cost of transportation and maximum time taken for transportation following the optimal route.