A Fuzzy Multiple Objective Mixed Integer Programming Approach for Carrier Selection and Freight Volume Allocation with Revenue Based Discount Schemes

Based on fuzzy multiple objective mixed integer programming, a model is introduced to simultaneously determine the number of carriers to employ and freight volume to allocate to these carriers under a multiple- cargo, multiple- carrier scenario. The model jointly considers the objectives of transportation cost, cargo loss and damage, and cargo delivery performance as well as the freight rate discount based on total transportation revenue. Furthermore, the solution procedure for this model is illustrated. At last, a numerical example is provided to verify the availability of above model and perform the results analysis. It is shown from results analysis that the transportation cost, cargo loss and damage quantity, and cargo late delivery quantity are increasing in the degree of vagueness in carriers' transportation capacity.