A study of distribution center location based on the rough sets and interactive multi-objective fuzzy decision theory

Abstract

In a distribution network, the location of the distribution center(s) is recognized to be one of the most crucial elements in determining the success and efficiency of the product flow. Determination of optimal distribution center location is an abiding challenge for researchers and professionals in the logistics sector. Such determination usually involves both quantitative and qualitative factors. For this reason, this paper proposes a new hybrid heuristic algorithm to deal with the problem, which combines rough set methods and fuzzy logic. The algorithm first employs rough set methods to obtain the targeted weights. Upon building up the targeted values, the synthetic evaluation values are obtained for alternative distribution centers. Since the distribution is different from the special work system of the ordinary retail trade, the multi-objective programming model is then developed taking into account the cost and combined earnings as the goal. After that, an interactive multi-objective fuzzy decision theory is used to formulate the mathematical model and the opinion interaction among the policy-makers. Thus, the distribution center location problem can be solved more efficiently. Analysis using numerical examples has proven the optimization reliability of the algorithm, and the result obtained is promising.