A New Decision Making Structure for Ranking Orders Delivery and Multi-Objective LocationRouting

This paper presents a new decision making structure to solve a location-routing problem (LRP) for a multilevel multi-depot distribution network. In the first step of the structure, a priority setting method by the fuzzy TOPSIS is adopted to rank the orders delivery based on order-oriented and customer-oriented criteria. Due to the lack of sufficient attention to customer satisfaction in the LRP literature, a multi-objective mixed-integer programming (MIP) model with two objective functions of cost and customer satisfaction is presented in the second step of the presented structure. Considering the outputs of the first step as the importance weights of customers orders delivery, the customer dissatisfaction objective function is computed as the weighted sum of deviations of obtained delivery time from desired ones that are stated by the customers. Vehicle fleets are heterogeneous and vehicles in the second layer are allowed to be assigned in multi-routes of the same depot within capacity andworking time limitations,

Keywords:

Multi-objective location-routing , Fuzzy TOPSIS , Customer satisfaction