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Fuzzy possibilistic linear programming approach for two echelon supply chain with multi-product and multi-time period

Author:W.Ritha and J.Merlin Vinotha

Abstract:
In the changing market scenario, the study of the supply chain model in a fuzzy environment is gaining phenomenal importance around the globe. In such a scenario, it is the need of the hour that a real supply chain is operated in an uncertain environment and the omission of any effects of uncertainty leads to inferior supply chain designs. This work presents a fuzzy possibilistic linear programming approach to make strategic resource ï¿½ planning decisions in multi-product and multi-time period two-echelon supply chains. In this model, demand rate, holding cost, transportation cost, packing charge and toll fees are considered as triangular fuzzy numbers. The objective of the proposed model is to provide an optimal inventory level for the warehouses and distribution centers and also, minimizing the total cost related to transportation, inventory carrying, packing and toll fees of the entire supply chain for a finite planning horizon. An industrial case demonstrates the feasibility of applying the proposed model to real world problem in a two-echelon supply chain under uncertain environment. In addition to that, if the efficiency of the transportation will be increased by using the light weight eco-friendly plastic pail rather than the traditional one, then the reduction of the total cost in the supply chain is also analyzed.