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Optimizing Single-Source Capacitated FLP in Fuzzy Decision Systems

This document proposes a new fuzzy single-source capacitated facility location problem model where demand is characterized by possibility distributions. The model selects a set of capacitated facilities to serve customer demand points while minimizing total cost and meeting credibility service level constraints. For certain common fuzzy demand distributions, the problem can be equivalently formulated as deterministic 0-1 integer programs solvable using standard algorithms. A numerical example is provided to illustrate the modeling approach.
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0% found this document useful (0 votes)
16 views2 pages

Optimizing Single-Source Capacitated FLP in Fuzzy Decision Systems

This document proposes a new fuzzy single-source capacitated facility location problem model where demand is characterized by possibility distributions. The model selects a set of capacitated facilities to serve customer demand points while minimizing total cost and meeting credibility service level constraints. For certain common fuzzy demand distributions, the problem can be equivalently formulated as deterministic 0-1 integer programs solvable using standard algorithms. A numerical example is provided to illustrate the modeling approach.
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Optimizing Single-Source Capacitated FLP in

Fuzzy Decision Systems

Liwei Zhang, Yankui Liu , and Xiaoqing Wang

College of Mathematics & Computer Science,


Hebei University Baoding 071002, Hebei, China
[email protected], yliu@hbu,edu.cn, [email protected]

Abstract. This work develops a new fuzzy version of single-source ca-


pacitated facility location problem (FLP), in which a set of capacitated
facilities is selected to provide service to demand points with possibility
distributions at the minimal total cost. Since the proposed FLP includes
credibility service level constraints and 0–1 decision variables, its solution
method is a challenge issue for research, and usually relies on metaheuris-
tics and approximation approach. However, for frequently used trape-
zoidal, Gamma and Normal fuzzy demands, the FLPs are equivalent to
deterministic 0-1 programming problems. As a consequence, the equiv-
alent 0-1 programming problems can be solved by general purpose soft-
ware or conventional optimization algorithms. At the end of this paper,
we demonstrate the developed modeling idea via numerical experiments.

Keywords: Capacitated facility location problem, Fuzzy programming,


Credibility service level, Integer programming.

1 Introduction

The single-source capacitated facility location problem (FLP) studies an FLP


and a generalized assignment problem between a set of demand points and a
set of capacitated facilities via some decision criterion. In the literature, most
research focused on deterministic single-source capacitated FLPs, which are also
related to uncapacitated FLPs. The interested reader may refer to the review
on FLPs [1]. As for the successful solution approaches to deterministic single-
source capacitated FLPs, Ahujia et al. [2] proposed a multi-exchange search
with heuristic on specially designed dynamic single-source capacitated FLP net-
works; Holmberg [3] designed an exact branch-and-bound method with a La-
grangian heuristic to solve single-source capacitated FLP; Tragantalerngsak [4]
developed a Lagrangian relaxation-based branch-and-bound algorithm for two-
echelon FLP; Cortinhal and Captivo [5] applied a tabu search with classical shift
and swap moves for single-source capacitated FLP, and Korupolu, Plaxton and
Rajaraman [6] suggested a simple local search heuristic for the capacitated FLP
in which the service costs obey triangular inequality.

Corresponding author.

Y. Tan et al. (Eds.): ICSI 2011, Part I, LNCS 6728, pp. 559–567, 2011.

c Springer-Verlag Berlin Heidelberg 2011
560 L. Zhang, Y. Liu, and X. Wang

Recently, some researchers have paid their attention to stochastic single-


source FLPs. For example, Zhou and Liu [7] presented expected value model,
chance-constrained programming and dependent-chance programming for capac-
itated FLP with stochastic demands, and integrated network simplex algorithm,
stochastic simulation and genetic algorithm for solving these stochastic mod-
els; Lin [8] considered a stochastic single-source capacitated FLP, and designed
a hybrid heuristic of Lagrangean relaxation within a branch-and-bound frame-
work to find upper and lower bounds for this problem. With the development of
fuzzy set and uncertainty theories [9,10,11,12,13], some researchers realized the
importance of fuzzy uncertainty in decision systems, and applied fuzzy theory
to FLPs. Zhou and Liu [14] proposed fuzzy expected cost minimization model,
fuzzy α-cost minimization model, and credibility maximization model according
to different decision criteria, and designed some hybrid intelligent algorithms
for solving these models; Wen and Iwamura [15] considered the FLP with un-
certainties, presented an α-cost model under the Hurwicz criterion with fuzzy
demands, and integrated the simplex algorithm, fuzzy simulation and genetic
algorithm to solve this model. As for two-stage fuzzy FLPs, Liu and Zhu [16],
Liu and Tian [17], Shen and Liu [18] developed three classes of two-stage models
based on minimum-risk and value-at-risk decision criteria, and discussed their
approximation methods as well as the convergence of the methods about opti-
mal solutions and optimal objective values, and Liu [19] presented a new class
of two-stage fuzzy random minimum risk problem based on mean chance theory
[12], and applied the developed optimization method to the capacitated FLP
with fuzzy random demands. In this paper, we consider a new fuzzy version of
single-source capacitated FLP, in which a set of capacitated facilities is selected
to provide service to demand points with possibility distributions at the minimal
total cost.
The plan of this paper is as follows. In Section 2, we formulate a new fuzzy
single-source capacitated FLP with service level requirements. In Section 3, we
discuss the equivalent programming problems when demands are characterized
by trapezoidal, Gamma and Normal fuzzy variables. In Section 4, we present one
numerical example to illustrate the developed modeling idea and effectiveness of
the proposed methods. Section 5 concludes the paper.

2 Problem Formulation

In this section, we will present a new fuzzy single-source capacitated FLP with
service level requirements. The model attempts to minimize the total system
costs, including the fixed cost of facilities and the transportation cost. To model
the problem, we adopt the following indices and parameters.

Indices:
I is the index set of facilities, i = 1, 2, . . . , m, and J is the index set of cus-
tomers, j = 1, 2, . . . , n.

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