Fuzzy bi-objective optimization model for multi-echelon distribution network

Kanika Gandhi, P.C. Jha


It is important for modern businesses to search the ways for continuous improvement in performance of their supply chains. The effective coordination and integrated decision making across the supply chain enhances the performance among its various partners in a multi stage network. The partners considered in this paper are product suppliers, processing points (PP), distribution centres (DC) and retail outlets (RO). The network addresses an uncertain environment threatened
by different sources in order to captivate the real world conditions. The uncertain demand of deteriorating products and its dependent costs develop uncertainties in the environment. On the other hand, suppliers and processing points have restricted capacities for the retail outlets’ order amount happened in each period. A bi-objective non-linear fuzzy mathematical model is developed in which the uncertainties are represented by the fuzzy set theory. The proposed model shows cost minimization and best supplier selection coordination under the conditions of capacity constraints, uncertain parameters and product’s deteriorating nature. The fish and fish products give good examples for the proposed model. To solve, the model is converted into crisp form and solved with the help of fuzzy goal programming.


multi stage, supplier selection, processing point, fuzzy goal programming, supply chain, Bi-objective.

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