In general, there exist conflicts between optimization of different objectives in a particular situation, i.e., when we consider a multi-objective and multi-level optimization problem. Two objective functions are said to be in conflict if the full satisfaction of one results in only partial satisfaction of the other. This paper describes the Multi-Criteria Multi-Level Dynamic Decision-Making (MCMLDDM) problem. It also tries to minimize a three-tier (Multi-level, which can be generalized) shipping cost supply chain system by LINGO software model and compares this result with the heuristic model. It is found that the results are optimal but the MCMLDDM model is efficient in practice because it involves two important aspects of any dynamic spatial-temporal decision problemhow to deal with uncertainty in dynamically changing input data and how to consider the importance of different criteria, depending on criteria satisfaction and respective phase (or iteration) of the decision process.

Decision making based on scientific methodologies is the main goal of organizational managers and system experts especially in multi-level decision-making. In a traditional Multi Criteria Decision Making (MCDM), each criterion is weighted by a fixed value and the decision maker uses this value to calculate a decision value for each alternative and prioritizes the alternatives based on the calculated decision values, normally in descending order. Even in the application of MCDM for dynamic systems, the weights of criteria are considered to be static. Also in the fuzzy decision making process, the values are fixed (fuzzy values with fixed membership functions). In this paper a new tautology called Multi-Criteria Dynamic Multi-Level Decision Making (MCDMLDM) is introduced where the dynamics of weightings of criteria versus a main factor (independent variable) such as time, cost is considered for decision making calculations. In this paper, the solution methodologies have also been discussed. In the first part, a general Heuristic model of MCDM is reviewed. In the second part, a three echelon distribution (supply chain system), as case study for MCDMLDM problem is developed and the optimal solution with LINGO-based optimization software is found.

The particular structure of the multi-criteria decision problem has made a very popular subject of study and an important research tool in operations research and management science. In addition to the importance that the decision problem represents in its own, it appears as a relaxation of more complex combinatorial optimization problems. That is why the multi-criteria decision problem has received great attention from the operations researchers. The multi-criteria dynamic decision making problem may appear as a complex optimization problem with multiple objectives. This paper addresses the problem of efficiency of feasible solutions of a problem-based MCDMDMD system with a case study of three-tier supply chain system.

Supply Chain Management Journal, Multi-Criteria Decision Making, Dynamic Multi-Level Distribution System, Dynamic Network Application, Fuzzy Decision Making Process, Supply Chain System, Traditional Decision Making Problem, Heuristic Method, Customer Service Strategies, Operational Models, Distribution Network Topology, Local Search Techniques, Classical Process.