Application of Fuzzy Optimization to Production-Distribution Planning in Supply Chain Management | Zendy

Shahram Ariafar | Zendy; Salam A. Ahmed | Zendy; Imtiaz Ahmed Choudhury | Zendy; M. Abu Bakar | Zendy

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Application of Fuzzy Optimization to Production-Distribution Planning in Supply Chain Management

Author(s) -

Shahram Ariafar,

Salam A. Ahmed,

Imtiaz Ahmed Choudhury,

M. Abu Bakar

Publication year - 2014

Publication title -

mathematical problems in engineering

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.262

H-Index - 62

eISSN - 1026-7077

pISSN - 1024-123X

DOI - 10.1155/2014/218132

Subject(s) - bottling line , production (economics) , factory (object oriented programming) , supply chain , fuzzy logic , operations research , computer science , production planning , distribution (mathematics) , mathematical optimization , industrial engineering , engineering , mathematics , economics , artificial intelligence , business , microeconomics , mechanical engineering , mathematical analysis , programming language , marketing , bottle

A production-distribution model has been developed that not only allocates the limited available resources and equipment to produce the products over the time periods, but also determines the economical distributors for dispatching the products to the distribution centers or retailers. The model minimizes production, inventory holding, backordering, and transportation cost while considering the time value of money. Since uncertainty is an inevitable issue of any real-world production system, then to provide a realistic model, the concept of fuzzy sets has been applied in the proposed mathematical modeling. To illustrate and show the feasibility and validity of the model, a real case analysis, which is pertaining to a mineral water bottling production factory, has been used. The case has been solved using a three-step solution approach developed in this study. The results show the feasibility and validity of the mathematical model, and also the solution procedure

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