Abstract
With the globalization of the supply chain and the change of demand environment, designing an effective logistic system in the sustainable development of the supply chain becomes more critical. This study proposes a location-routing problem to determine an efficient integration of single factory and multi-distribution centers and multi-customers in uncertain demands. This problem can be regarded as an optimization integrating location, distribution decision, and routing management. The objective function is to minimize the total cost and satisfy all the requirements, which is a highly complex NP-hard problem, so a hybrid algorithm of genetic algorithm (GA) and tabu search (TS) algorithm is proposed. A fuzzy c-means clustering algorithm is used to produce an initial solution. Fuzzy triangular number and confidence interval transformation are used to deal with fuzzy customer demand. The research findings concludes that (i) determine the numbers of facilities with locations that should be opened and (ii) minimize the total cost in supply chain. The experiments prove that the proposed hybrid algorithm of GA and TS algorithm overcomes the defect of local optimum in the literature viewpoint, and the optimization algorithms can effectively solve the location-routing problem.
Highlights
In order to remain competitive in the global manufacturing environment, effective supply chain strategic planning has become a vital factor
2) EVALUATION METHOD OF SOLUTION For a distribution route of selected customer nodes, its advantages and disadvantages are determined by the objective function
This paper stands for a strategic perspective of enterprise management and builds a production-distribution model in the supply chain
Summary
In order to remain competitive in the global manufacturing environment, effective supply chain strategic planning has become a vital factor. In integrated supply chain decision making, location problems (LP) and vehicle routing problems (VRP) are the two most studied areas in theory and practice. In LP, VRP, and other things, based on the flow decision model, location-routing Problem (LRP) arises. Transportation costs should be considered when making a facility location decision. By establishing the LRP model, for many in the case of customers and multiple facilities, it can simultaneously solve a series of related problem from determining the optimal number and capacity of distributions to seek the optimal transportation plan, route arrangement between overall issues, thereby reducing supply chain costs. A nonlinear mathematical model of production scheduling and vehicle routing considering time window is proposed by Huey Kuo Chen et al (2009) [9]. Poorya Farahani et al (2012) [11] developed an iterative solution, which integrated short-term production and location plans
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