A fuzzy linear programming approach to design of supply chain network consideration of service level

The benefits of managing supply chain networks by integrating operational, design and financial decisions have been acknowledged by industrial and academic community.The aim of this work is to determine the optimal configuration of a supply chain network considering operational, imancialand service level constraints. Since a real supply chain operates in a highly dynamic and uncertain environment, fuzzy mathematical programming approach is used to handle theuncertainty in model parameters. An interactive fuzzy solution approach is also applied to solve the proposed fuzzy mixedinteger linear programming model. In this approach fuzzy ranking method is used to rank fuzzy objective values and constraints with fuzzy parameters. This fuzzy method provides the decision maker (DM) optimal solution with different degree of satisfacion. Numerical results show the power of the proposed model as well as the interactive solution approach in handling uncertainty of input data.

Keywords:

Supply chain network , Fuzzy mathematical programming , Customer service level , uncertainty modeling