A New Tradeoff Model for Fuzzy Supply Chain Network Design and Optimization

ABSTRACT This article proposes a novel mixed integer linear programming model for solving a fuzzy supply chain network (SCN) design problem. This problem includes fuzzy parameters, choosing suppliers according to their quality of raw materials, and the supplier's engagement contracts. There is a tradeoff between raw material quality, and its purchasing and reprocessing costs. If a decision-maker (DM) wishes to work with a supplier that supplies a low-quality raw material, this raw material may be in need of reprocessing. To avoid the reprocessing costs, a supplier that provides a high-quality raw material can be chosen, but in this case the DM faces a high purchasing cost. An integrated fuzzy SCN system that consists of multiple suppliers, manufacturers, distribution centers, and retailers is considered in order to address problems under the aforementioned tradeoffs. Finally, concluding remarks and suggestions for future work are presented.

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