FUZZY MULTI-OBJECTIVE PROGRAMMING MODEL FOR FACILITY LOCATION IN AN INTEGRATED SUPPLY CHAIN NETWORK

Traditional supply chain network design problems are often taken as a single objective. However, supply chains are complex networks formed by organizations having conflicting objectives with each other in real life. In this study, a multi-product, multi-stage and multi-period planning model is proposed to achieve multiple incommensurable goals in an integrated supply chain network with uncertain market demands. The supply chain planning model is constructed as a mixed-integer nonlinear programming problem to satisfy several conflicting objectives with each other. The proposed model consists of two objective functions. The first one is minimizing the fixed opening and operating costs with transportation costs determined depending on distances. Second one is minimizing the purchasing, ordering, inventory and backlogging costs according to Economic Production Quantity (EPQ) model. Fuzzy goal programming approach is used in order to include decision maker's imprecise goal values in proposed model. The model is solved using GAMS optimization program. The application results presented in this study, demonstrates that fuzzy modeling and solution approaches could be used in the creation of more realistic models of the supply chain.