International Journal of
Innovation, Management and Technology

Abstract

The paper proposes a model for allocationproblems in business organizations considering multipleobjectives. It concerns the distribution of resources amongoptions in order to achieve the best value for the goals of thebusiness. Thus, the paper develops a model for a product mixplan using the multi-objective optimization (MOO) approach.The objectives set by the paper are to minimize production costsand waste. The inclusion of the production wastes wasmotivated by United Nations Sustainable Development Goalnumber 13, which states, “Take immediate action to combatclimate change and its impacts.” The developed model was thentested in a manufacturing company and resulted inPareto-optimal solutions. Such solutions determine the quantityof products to be produced in several production facilities at aparticular period of time and will be set as the product mix planof the case study company. A sensitivity analysis was alsoperformed by varying the weights of the objective functions,which resulted in different decisions about the best product mixplan. It was found that solution 2 is more stable than solution 1.Moreover, the paper also analyzed the permissible ranges forthe coefficients of the decision variables and the coefficients forthe constraints, where the optimal solutions remain unchanged.The proposed mathematical model thus demonstrates itsviability and usefulness in achieving the company's aims.