Combining possibilistic linear programming and fuzzy ahp methodologies for solving multi objective multi facility location problem

Profitability and cost optimization and sustainable management of achieved optimality has an increasing importance for the firms. For sustainability, firms have to bring together new business frameworks and processes with their existing structure by eliminating geographical restrictions. Supply chain is the concept that supports this aim. All the value adding activities such as raw material producing, procurement processes during transformation of raw and semi-finished products to finished products, and dispatching processes of finished products to final consumers are components of the supply chain.Manufacturers to retain their marketshare under intensive competitive environment, for being closer to the outspreaded customers and for better service and delivery performance have to determine right locations for their production and distribution centers. Determination of right location becomes a more difficult mission for firms under dynamic and variable conditions. In theory and practice, network design and optimization are the most dealed problems in supply chain. Network design problem solution could determine the number and location of manufacturing and distribution centers such as plant, warehouse and distribution centers by considering the market demand and relevant cost factors. Proper settings could help firms to make decisions by minimum costs.In this direction, in this thesis study, in a multi level supply chain, by integrating possibilistic linear programming and fuzzy analytical hierarchical process approaches a multi objective linear programming model that considers qualitative and quatitative factors has been proposed. In first objective function minimization of total transportation and facility costs, in second objective function maximum qualitative factors utility has been purposed. Uncertainty in the chain has been represented by possibilistic linear programming in first objective function and by fuzzy analitical hierarchical process in second objective function. Supplier and customer numbers are assumed constant. In the proposed model, selection decisions among the facility and distribution center locations are made and the amount of the products that have to be trasported beetween facilities are calculated. LINGO 9.0 optimization software has been used. The results are compared after evaluation of two phased probabilistic linear programming under different scenarios and the outcomes are presented interactively to the decision makers.