Logistics distribution centers location problem under fuzzy environment

Abstract

Logistics distribution centers location problem is concerned with how to select distribution centers from the potential set for minimizing cost and fulfill the demand. This paper aims at multi-objective optimization for three-echelon supply chain architecture consisting of manufacturer, distribution centers (DCs) and customers. The key design decisions considered are: The number and location of distribution centers, the quantity of products to be shipped from manufacturer to DCs and then from DCs to customers. The present study mainly investigates the proposed problem under fuzzy environment and the uncertain model is converted into a deterministic form by the expected value measure. The approximate best solution of the model is provided using fuzzy simulation. A numerical example is used to illustrate the effectiveness of the proposed model and solution approach. © Springer-Verlag Berlin Heidelberg 2014.