Abstract

A key issue in contemporary supply chain management, Distribution Network Design (DND) addresses location and capacity of warehouses and retail outlets, together with the manufacturing plant and supply sources. An effective DND should not only provide the minimization of transportation and inventory costs, but also increase the level of service available to the customers. When designing a distribution network, parameters can not be frequently determined as crisp values. Fuzzy logic is utilized in many engineering applications so as to handle imprecise data. This chapter provides a mathematical programming basis for distribution network design problem under imprecise data environment. After providing background information about DND problem as well as fuzzy linear programming, fuzzy linear programming model of DND problem is solved for different α-cut values.

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