Chapter
Apr 26, 2012

Maximal Benefits Location Model Based on the Fuzzy Function and Analytic Network Process

Publication: ICLEM 2010: Logistics For Sustained Economic Development: Infrastructure, Information, Integration

Abstract

The multiple distribution centers and the demand point's form are of common interest in the supply chain. In the pursuit of the minimum supply chain cost, the distribution centers in a competitive environment also have the maximum benefit. Therefore, this paper introduces the discrete location model that achieves both the lowest total cost of the supply chain and the maximal effective coverage of the distribution centers. In our model, the right benefit weight and the optimal demand are essential for the final solution. The consumption of demand point is changing, and will cause changes in the inventory cost. We use fuzzy triangular function to better simulate changes in demand, and thus obtain the optimal demand for the demand points. Benefit weight is a multi-parameter product of interaction and interdependence, we use the analytic network process to obtain this. We construct the evaluation index system based on the rational choice of the evaluation parameters, and improve the objectivity of results by reducing the loss of valid information. Using the analytic network process, we establish a network of interdependence and feedback of all parameters and overcome the defects in traditional method where each parameter is independently of each other and deviates from the actual word.

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Go to ICLEM 2010
ICLEM 2010: Logistics For Sustained Economic Development: Infrastructure, Information, Integration
Pages: 2606 - 2611

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Published online: Apr 26, 2012

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Ya Bi, Ph.D.
School of logistics engineering, WUHAN University of Technology Hubei Wuhan, 430205, China
Wenfeng Li
Lecturer, HUBEI University of Economics Hubei Wuhan, 430063, China Prof. School of Logistics Engineering, WUHAN University of Technology, Hubei Wuhan 430063, China

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