Model and approach of fuzzy bilevel decision making for logistics planning problem

Abstract

PurposeThis study aims to develop a decision making model and approach for logistics planning problem which naturally involves two or more decision units at a hierarchical structure. Such a decision problem in practice often involves uncertain and imprecise factors with the parameters of a bilevel decision model, either in the objective functions or constraints.Design/methodology/approachThis paper proposes a fuzzy bilevel decision making model for a general logistics planning problem and develops a fuzzy number based Kth‐best approach to find an optimal solution for the proposed fuzzy bilevel decision problem.FindingsThe proposed approach illustrates an optimal solution in logistics management, which meets maximally/minimally the objectives of both supplier and distributor (or other parts of the logistics chain). The proposed fuzzy bilevel decision approach can have a wide range of logistics management applications.Research limitations/implicationsThe decision model, approach and system will be further tested for some more complicated real cases in the future.Originality/valueThe proposed fuzzy bilevel decision model and approach are new, which offer theoretical and practice help to logistics management.