Track: Production Planning and Control

Abstract

Customer demands fulfillment is most important issue in supply chain management due to its long term effect on corporation performance. In most recent researches, it is assumed that prominent parameters such as customer demands are deterministic while supply chain design is a strategic decision and its effect last for long terms. Furthermore, an efficient supply chain must be designed to response uncertainties. One of the most important interruptions in supply chain is disruption during transportation among different layers. In this study, a three echelon supply chain consists of manufacturer, distribution centers and customers are considered so that disruption may occur in distribution layers while satisfying customers with fuzzy demand. The main objective of this model is to minimize the total cost of supply chain network. Here, a fuzzy mathematical model is developed and solved by GAMS software. The results show that the proposed model is able to cover this problem properly and finding optimal solution.