Application of Fuzzy Mathematical Programming to Optimize an Integrated Production-distribution System

Providing an efficient unified plan that integrates production and distribution plans in an uncertain environment is necessary to ensure the overall effectiveness of supply chain management. This paper presents a fuzzy bi-objective linear programming model for integrating multiproduct and multi-period production-distribution planning into a unified framework considering fuzzy production and demand. In this model, products deliver to retailers through cross docking or direct shipment strategies. The aim is to determine the optimal configuration of the production-distribution network in order to simultaneously minimize the total costs and design a JIT distribution system in a three-echelon supply chain. Triangular fuzzy numbers are used to represent fuzzy parameters, and a two-phase approach based on a weighted average method and weighted additive model is applied to solve the proposed model. A numerical example is then used to validate the applicability of the model.