Model and approach of fuzzy bilevel decision making for logistics planning problem

Abstract

Purpose

This study aims to develop a decision making model and approach for logistics planning problem which naturally involves two or more decision units at a hierarchical structure. Such a decision problem in practice often involves uncertain and imprecise factors with the parameters of a bilevel decision model, either in the objective functions or constraints.

Design/methodology/approach

This paper proposes a fuzzy bilevel decision making model for a general logistics planning problem and develops a fuzzy number based Kth‐best approach to find an optimal solution for the proposed fuzzy bilevel decision problem.

Findings

The proposed approach illustrates an optimal solution in logistics management, which meets maximally/minimally the objectives of both supplier and distributor (or other parts of the logistics chain). The proposed fuzzy bilevel decision approach can have a wide range of logistics management applications.

Research limitations/implications

The decision model, approach and system will be further tested for some more complicated real cases in the future.

Originality/value

The proposed fuzzy bilevel decision model and approach are new, which offer theoretical and practice help to logistics management.

Citation

Zhang, G. and Lu, J. (2007), "Model and approach of fuzzy bilevel decision making for logistics planning problem", Journal of Enterprise Information Management, Vol. 20 No. 2, pp. 178-197. https://doi.org/10.1108/17410390710725760