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A Fuzzy Approach to Multi Objective Multi Echelon Supply Chain
B. Ahlatcioglu Ozkok 1 , S. Ercan 2 and E. Budak 1
1 Department of Mathematics, Yildiz Technical University, Istanbul, Turkey 2 Department of
Abstract
Mathematics, Firat University, Elazig, Turkey
Recent times, companies are being forced by hard marketing conditions to make significant and
strategic decisions on their supply chains. In this context, companies are trying to optimize supply
chains towards customer demands and trying to prevent costs that caused by number of inactive facilities.
In this study, by using AHP we make decision about potential establishment of a number of potential
warehouses and distributions centers at regions to be selected from a set of possible candidates with
certain possibilities of customer demands in the supply chain network of a company that is importing
and exporting cleaning materials. The proposed model attempts to simultaneously minimize total cost
and maximizing rating candidate locations using mixed integer linear programming. To obtain solution
fuzzy decision making method is used and numerical example is illustrated.
References
[1] Tsiakis, P., Shah, N., Pantelides, C.C., Design of multi-echelon supply chain network under demand
uncertainty, Ind. Eng. Chem. Res., 40, 3585-3604, 2001.
[2] Amid, A., Ghodsypour, S.H., O’Brien, C., Fuzzy multi objective linear model for supplier selection
in a supply chain, Int. J. Production Economics, 104, 394-407, 2006.
[3] Zimmerman, H.J., Fuzzy Set Theory and its applications, Kluwer Academic Publishers, Boston/
Dordrecht/London, 1992.
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[4] Kokangul, A., Susuz, Z., Integrated analytical hierarch process and mathematical programming to
supplier selection problem with quantity discount, Applied Mathematical Modeling, 33, 1417-1429, 2009.