Abstract
As information and communication technology evolves and expands, business and markets are linked to form a complex international network, thus generating plenty of cross-border trading activities in the supply chain network. Through the observations from a typical cross-border supply chain network, this paper introduces the fuzzy reliability-oriented 2-hub center problem with cluster-based policy, which is a special case of the well-studied hub location problem (HLP). This problem differs from the classical HLP in the sense that (i) the hub-and-spoke (H&S) network is grouped into two clusters in advance based on their cross-border geographic features, and (ii) a fuzzy reliability optimization approach based on the possibility measure is developed. The proposed problem is first modeled through a mixed-integer nonlinear programming (MINLP) formulation that maximizes the reliability of the entire cross-border supply chain network. Then, some linearization techniques are implemented to derive a linear model, which can be efficiently solved by exact algorithms run by CPLEX for only small instances. To counteract the difficulty for solving the proposed problem in realistic-sized instances, a tabu search (TS) algorithm with two types of move operators (called “Swap I” and “Swap II”) is further developed. Finally, a series of numerical experiments based on the Turkish network and randomly generated large-scale datasets are set up to verify the applicability of the proposed model as well as the superiority of the TS algorithm compared to the CPLEX.
Highlights
Nowadays, under the environment of fierce market competition and economic globalization, enterprises have begun to focus on business improvement and management of complex supply chains. e enterprises are beginning to chase lower material/rental costs and seek new markets in other supply chain regions
By combining these aforementioned aspects, the primary research objective of this paper is to propose a fuzzy reliability-oriented 2-hub center problem with cluster-based policy to design the cross-border supply chain network within the framework of fuzzy reliability theory. is problem aims to maximize the reliability of the entire crossborder supply chain network by locating the warehouse and cross-border inspection and allocating the raw material/ semifinished goods suppliers and manufacturing plants/ end-customers that are served by the corresponding warehouse and cross-border inspection, respectively. e second research goal of this paper is to develop an efficient tabu search (TS) algorithm to solve the proposed model to obtain optimal/ near-optimal solutions
For all of these reasons, this study addresses a special case of the hub location problem (HLP), namely, the fuzzy reliability-oriented 2-hub center problem with cluster-based policy. is new problem aims to find the locations of the warehouse and cross-border inspection and the allocations of raw material/semifinished goods suppliers and manufacturing plants/end-customers to the corresponding warehouse and cross-border inspection to maximize the fuzzy reliability of the entire cross-border supply chain network
Summary
Under the environment of fierce market competition and economic globalization, enterprises have begun to focus on business improvement and management of complex supply chains. e enterprises are beginning to chase lower material/rental costs and seek new markets in other supply chain regions. Liu et al [33] considered the optimal design of preventive maintenance policy using the fuzzy reliability framework, where an artificial neural network was used for reliability prediction and evaluation By combining these aforementioned aspects, the primary research objective of this paper is to propose a fuzzy reliability-oriented 2-hub center problem with cluster-based policy to design the cross-border supply chain network within the framework of fuzzy reliability theory. Is problem aims to maximize the reliability of the entire crossborder supply chain network by locating the warehouse and cross-border inspection and allocating the raw material/ semifinished goods suppliers and manufacturing plants/ end-customers that are served by the corresponding warehouse and cross-border inspection, respectively. (2) A hybrid approach, combining the 2-hub location modeling method and fuzzy reliability-oriented optimization, is proposed to formulate the cross-border supply chain network design problem.
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