Fuzzy Cost Analysis in a Fuzzy Transportation System a Study of the Supply Chain Management in a General Contractor Company

Volume 2, Issue 1, pp 184--194 http://dx.doi.org/10.22436/jmcs.002.01.19

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Authors

Hossein Abdollahnejad Barough - Department of Industrial Engineering, Payam-e-Noor University

Abstract

Transportation models play an important role in logistics and supply chain management for reducing cost and improving services. In this paper, the author presented a fuzzy transportation problem, in which the cost coefficients and supply and demand quantities are fuzzy numbers. The problem is solved in two stages. First, calculating the maximum satisfactory level and achieving balances between fuzzy supplies and demands. Second, the problem is solved by considering the unit of transportation costs and optimal solutions which are connected with fuzzy quantities’ satisfactory level are founded. The author used two different satisfactory levels for the problem: The transportation costs breaking points \((\gamma_p)\) and the values that have violated positive condition of optimal solutions in the intervals of \([\gamma_{p-1},\gamma_p]\). A new method is proposed in this paper to find optimal solutions. The proposed method is then illustrated through a numerical example.

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Keywords

• Fuzzy Transportation Problem
• Supply Chain Management
• Fuzzy Cost Analysis
• Linear Programming.

MSC

•  90B06
•  03B52
•  90C05
•  90B99

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