A supply chain distribution network design model: An interactive fuzzy goal programming-based solution approach

A supply chain (SC) distribution network design model is developed in this paper. The goal of the model is to select the optimum numbers, locations and capacity levels of plants and warehouses to deliver products to retailers at the least cost while satisfying desired service level to retailers. A maximal covering approach is used in statement of the service level. The model distinguishes itself from other models in this field in the modeling approach used. Because of somewhat imprecise nature of retailers’ demands and decision makers’ (DM) aspiration levels for the goals, a fuzzy modeling approach is used. Additionally, a novel and generic interactive fuzzy goal programming (IFGP)-based solution approach is proposed to determine the preferred compromise solution. To explore the viability of the proposed model and the solution approach, computational experiments are performed on realistic scale case problems.