Minimum Risk Facility Location-Allocation Problem with Type-2 Fuzzy Variables

Facility location decision is basically viewed as a long-term strategy, so the inherited uncertainty of main parameters ought to be taken into account in order to make models applicable. In this paper, we examine the impact of uncertain transportation costs and customers’ demands on the choice of op...

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Main Authors: Xuejie Bai, Ying Liu
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:The Scientific World Journal
Online Access:http://dx.doi.org/10.1155/2014/472623
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author Xuejie Bai
Ying Liu
author_facet Xuejie Bai
Ying Liu
author_sort Xuejie Bai
collection DOAJ
description Facility location decision is basically viewed as a long-term strategy, so the inherited uncertainty of main parameters ought to be taken into account in order to make models applicable. In this paper, we examine the impact of uncertain transportation costs and customers’ demands on the choice of optimal location decisions and allocation plans. This leads to the formulation of the facility location-allocation (FLA) problem as a fuzzy minimum risk programming, in which the uncertain parameters are assumed to be characterized by type-2 fuzzy variables with known type-2 possibility distributions. Since the inherent complexity of type-2 fuzzy FLA may be troublesome, existing methods are no longer effective in handling the proposed problems directly. We first derive the critical value formula for possibility value-at-risk reduced fuzzy variable of type-2 triangular fuzzy variable. On the basis of formula obtained, we can convert original fuzzy FLA model into its equivalent parametric mixed integer programming form, which can be solved by conventional numerical algorithms or general-purpose software. Taking use of structural characteristics of the equivalent optimization, we design a parameter decomposition method. Finally, a numerical example is presented to highlight the significance of the fuzzy FLA model. The computational results show the credibility and superiority of the proposed parametric optimization method.
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spelling doaj-art-d009dfeb51c84097a37702c12e4d70902025-02-03T05:43:57ZengWileyThe Scientific World Journal2356-61401537-744X2014-01-01201410.1155/2014/472623472623Minimum Risk Facility Location-Allocation Problem with Type-2 Fuzzy VariablesXuejie Bai0Ying Liu1College of Science, Agricultural University of Hebei, Baoding, Hebei 071001, ChinaCollege of Management, Hebei University, Baoding, Hebei 071002, ChinaFacility location decision is basically viewed as a long-term strategy, so the inherited uncertainty of main parameters ought to be taken into account in order to make models applicable. In this paper, we examine the impact of uncertain transportation costs and customers’ demands on the choice of optimal location decisions and allocation plans. This leads to the formulation of the facility location-allocation (FLA) problem as a fuzzy minimum risk programming, in which the uncertain parameters are assumed to be characterized by type-2 fuzzy variables with known type-2 possibility distributions. Since the inherent complexity of type-2 fuzzy FLA may be troublesome, existing methods are no longer effective in handling the proposed problems directly. We first derive the critical value formula for possibility value-at-risk reduced fuzzy variable of type-2 triangular fuzzy variable. On the basis of formula obtained, we can convert original fuzzy FLA model into its equivalent parametric mixed integer programming form, which can be solved by conventional numerical algorithms or general-purpose software. Taking use of structural characteristics of the equivalent optimization, we design a parameter decomposition method. Finally, a numerical example is presented to highlight the significance of the fuzzy FLA model. The computational results show the credibility and superiority of the proposed parametric optimization method.http://dx.doi.org/10.1155/2014/472623
spellingShingle Xuejie Bai
Ying Liu
Minimum Risk Facility Location-Allocation Problem with Type-2 Fuzzy Variables
The Scientific World Journal
title Minimum Risk Facility Location-Allocation Problem with Type-2 Fuzzy Variables
title_full Minimum Risk Facility Location-Allocation Problem with Type-2 Fuzzy Variables
title_fullStr Minimum Risk Facility Location-Allocation Problem with Type-2 Fuzzy Variables
title_full_unstemmed Minimum Risk Facility Location-Allocation Problem with Type-2 Fuzzy Variables
title_short Minimum Risk Facility Location-Allocation Problem with Type-2 Fuzzy Variables
title_sort minimum risk facility location allocation problem with type 2 fuzzy variables
url http://dx.doi.org/10.1155/2014/472623
work_keys_str_mv AT xuejiebai minimumriskfacilitylocationallocationproblemwithtype2fuzzyvariables
AT yingliu minimumriskfacilitylocationallocationproblemwithtype2fuzzyvariables