Industrial Engineering Journal

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A Fuzzy Multi-objective Optimization Model for Distribution Center Location Based on Grey Clustering Evaluation

  

  1. 1. Chongqing Engineering Technology Research Center for Information Management in Development, Chongqing Technology and Business University, Chongqing 400067, China; 2. Chongqing Key Laboratory of Electronic Commerce & Supply Chain System, Chongqing Technology and Business University, Chongqing 400067, China
  • Online:2016-10-31 Published:2017-02-21

Abstract:

A logistics system has distribution centers as its key nodes, and the rationality of distribution centers location decision is of great value. The location of multidistribution centers is studied integrating multiattribute decision making method and optimization method. Firstly, the candidate locations are evaluated based on grey clustering decision. Then, three objective functions are considered as follows, to minimize the total logistics cost, to maximize the capacity utilization and mean evaluating scores of open distribution centers. Besides, a distribution center location model in three echelon supply chain system is built considering fuzzy demands and capacity constraints. This model is depicted as a mixed integer nonlinear programming model. Using chance constrained programming to clear the fuzzy demand, the problem is transformed into a single objective problem based on target weighting. Lastly, a numerical example is given to verify the feasibility of the proposed model. In reliability, satisfactory results can be obtained according to the weight preference of the decision makers.

Key words: distribution center, location, grey clustering evaluation, multiobjective optimization model