Capacitated two-stage facility location problem with fuzzy costs and demands

In this study, we develop a two-stage capacitated facility location model with fuzzy costs and demands. The proposed model is a task of 0–1 integer two-stage fuzzy programming problem. In order to solve the problem, we first apply an approximation approach to estimate the objective function (with fuzzy random parameters) and prove the convergence of the approach. Then, we design a hybrid algorithm which integrates the approximation approach, neural network and particle swarm optimization, to solve the proposed facility location problem. Finally, a numerical example is provided to test the hybrid algorithm.