A Fuzzy multi-product two-stage supply chain network design with possibility of direct shipment

Abstract

The configuration of the supply chain network (SCN) is one of the strategic issues that have a major impact on the overall performance of the supply chain. A well designed SCN leads to an ability to reduce the supply chain total cost. These purposes are influenced by the supply chain strategy, which is based either on direct or indirect supply or shipment. In the case of direct shipment, the products are directly transported from the point of origin to the customers. In the classic transportation problems, it is usually assumed that the transportation time and costs are certain. Most existing mathematical models neglect the presence of uncertainty within a programming environment. This uncertainty might come about because of traffic jam, machine malfunctioning, defect in raw material, interpretation of various events and etc. These emprise parameters can be considering as fuzzy numbers. In this study, for the first time a mathematical model for a responsive, multi-product two-stage, SCN with possibility of direct shipment is proposed. Because of the unpredictable factors that mentioned above, cost coefficients are considered as trapezoidal fuzzy numbers. Therefore, for validation, the proposed model is coded by GAMS software. The results showed that relevant model is valid.