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A fuzzy multiobjective linear programming approach for green multiechelon distribution network design

Pham Duc Tai (School of Manufacturing Systems and Mechanical Engineering, Sirindhorn International Institute of Technology, Thammasat University, Khlong Nueng, Thailand)
Krit Jinawat (School of Manufacturing Systems and Mechanical Engineering, Sirindhorn International Institute of Technology, Thammasat University, Khlong Nueng, Thailand)
Jirachai Buddhakulsomsiri (School of Manufacturing Systems and Mechanical Engineering, Sirindhorn International Institute of Technology, Thammasat University, Khlong Nueng, Thailand)

Journal of Modelling in Management

ISSN: 1746-5664

Article publication date: 21 November 2023

Issue publication date: 13 March 2024

106

Abstract

Purpose

Distribution network design involves a set of strategic decisions in supply chains because of their long-term impacts on the total logistics cost and environment. To incorporate a trade-off between financial and environmental aspects of these decisions, this paper aims to determine an optimal location, among candidate locations, of a new logistics center, its capacity, as well as optimal network flows for an existing distribution network, while concurrently minimizing the total logistics cost and gas emission. In addition, uncertainty in transportation and warehousing costs are considered.

Design/methodology/approach

The problem is formulated as a fuzzy multiobjective mathematical model. The effectiveness of this model is demonstrated using an industrial case study. The problem instance is a four-echelon distribution network with 22 products and a planning horizon of 20 periods. The model is solved by using the min–max and augmented ε-constraint methods with CPLEX as the solver. In addition to illustrating model’s applicability, the effect of choosing a new warehouse in the model is investigated through a scenario analysis.

Findings

For the applicability of the model, the results indicate that the augmented ε-constraint approach provides a set of Pareto solutions, which represents the ideal trade-off between the total logistics cost and gas emission. Through a case study problem instance, the augmented ε-constraint approach is recommended for similar network design problems. From a scenario analysis, when the operational cost of the new warehouse is within a specific fraction of the warehousing cost of third-party warehouses, the solution with the new warehouse outperforms that without the new warehouse with respective to financial and environmental objectives.

Originality/value

The proposed model is an effective decision support tool for management, who would like to assess the impact of network planning decisions on the performance of their supply chains with respect to both financial and environmental aspects under uncertainty.

Keywords

Acknowledgements

The authors would like to thank Thailand National Metal and Materials Technology Center (MTEC) for providing of emission data.

Declaration of conflicting interests: The authors declare no potential conflicts of interest with respect to the research, authorship and/or publication of this article.

Funding: This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.

Citation

Tai, P.D., Jinawat, K. and Buddhakulsomsiri, J. (2024), "A fuzzy multiobjective linear programming approach for green multiechelon distribution network design", Journal of Modelling in Management, Vol. 19 No. 3, pp. 1024-1055. https://doi.org/10.1108/JM2-05-2023-0101

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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