Application of fuzzy mathematical programming approach to the production allocation and distribution supply chain network problem

An efficient integration of production and distribution plans into a unified framework is critical to achieving competitive advantage. This paper addresses the production and distribution planning problem in a supply chain system that involves the allocation of production volumes among the different production lines in the manufacturing plants, and the delivery of the products to the distribution centers. An integrated optimization model for production and distribution planning is proposed, with the aimed of optimally coordinating important and interrelated logistics decisions. However, a real supply chain operates in a highly dynamic and uncertain environment. Therefore, this model is transformed into fuzzy models taking into account the fuzziness in the capacity constraints, and the aspiration level of costs using different aggregation operators. The applicability and flexibility of the proposed models are illustrated through a case study in consumer goods industry. (C) 2009 Elsevier Ltd. All rights reserved.