Affiliations: Department of Industrial Engineering, Amirkabir University of Technology, Tehran, Iran | Department of Industrial Economics and Technology Management, Norwegian University of Science and Technology, Norway | Sabanci University, Manufacturing Systems and Industrial Engineering, Orhanli-Tuzla, Istanbul, Turkey | TOBB Economics and Technology University, Ankara, Turkey | Department of Mechanical and Industrial Engineering, University of Toronto, Toronto, ON, Canada
Note: [] Corresponding author. Mohammad Hossein Fazel Zarandi, Department of Industrial Engineering, Amirkabir University of Technology, Tehran, Iran. E-mail: [email protected]
Abstract: This paper puts forward a location-routing problem with fuzzy demands (LRPFD). A fuzzy chance constrained programming (CCP) model is presented and a simulation-embedded simulated annealing (SA) algorithm is proposed to solve it. Moreover, an initialization heuristic is presented which is based on the well-known fuzzy c-means clustering algorithm. Numerical examples clearly show the effectiveness of the proposed solution procedure. In addition, the sensitivity analysis of the objective function based on the dispatcher preference index is presented.
Keywords: Location-routing problem (LRP), uncertainty, fuzzy logic, simulation, simulated annealing, credibility theory
