Using greedy clustering method to solve capacitated location-routing problem with fuzzy demands

In this paper, the capacitated location-routing problem with fuzzy demands (CLRP-FD) is considered. In CLRP-FD, facility location problem (FLP) and vehicle routing problem (VRP) are observed simultaneously. Indeed, the vehicles and the depots have a predefined capacity to serve the customers that have fuzzy demands. To model this problem, a fuzzy chance constrained programming model of that is designed based upon the fuzzy credibility theory. To solve this problem, a greedy clustering method (GCM) including the stochastic simulation is proposed. To obtain the best value of the dispatcher preference index of the model and to analyze its influence on the final solution, numerical experiments are carried out. Finally, to show the performance of the greedy clustering method, associated results are compared with the lower bound of the solutions. (C) 2013 Elsevier B.V. All rights reserved.