BI-OBJECTIVE DIFFERENTIATED SUPPLY CHAIN SERVICE MODEL FOR PIZZA DELIVERY TAKING CUSTOMER PREFERENCE ON PRICE, DUE TIME, AND OVERDUE FINE INTO CONSIDERATION

BI-OBJECTIVE DIFFERENTIATED SUPPLY CHAIN SERVICE MODEL FOR PIZZA DELIVERY TAKING CUSTOMER PREFERENCE ON PRICE, DUE TIME, AND OVERDUE FINE INTO CONSIDERATION

Because of the increasingly varied customer requirements for the price, due time, and overdue fine setting in a pizza delivery supply chain, including production and transportation, a differentiated service model based on the maximal profit and customer satisfaction criteria has become popular in the field of supply chain management. In this study, a bi-objective differentiated supply chain service model for the price, due time, and overdue fine settings for pizza delivery, taking the customer preference into consideration was developed. As the optimization of the differentiated service model was an NP problem, we developed a bi-objective hybrid heuristic method. A simulation program for pizza delivery was used to obtain the bi-objective values for each solution searched by the proposed method. The results revealed that the proposed method was better than the existing heuristic methods in terms of both the profit and customer satisfaction criteria. A sensitivity analysis for different location service ranges and different mean arrival rates was also conducted.