Production-distribution planning of construction supply chain management under fuzzy random environment for large-scale construction projects

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January 2013, 9(1): 31-56. doi: 10.3934/jimo.2013.9.31

Production-distribution planning of construction supply chain management under fuzzy random environment for large-scale construction projects

Jiuping Xu ^1, and Pei Wei ^1,

1.	State Key Laboratory of Hydraulics and Mountain River Engineering, Sichuan University, Chengdu 610064, China, China

Received July 2011 Revised May 2012 Published December 2012

Abstract
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In this paper, production-distribution planning in construction supply chain management is investigated. A bi-level model for a production-distribution planning problem under a fuzzy random environment is presented. Construction projects, the leader in the hierarchy, not only control the allocation of items to each depot but are also responsible for ordering items from the manufacturing company. The manufacturing company, the follower in the hierarchy, reacts to these orders by deciding which manufacturing plants and production lines are going to be used. The model presented in this paper is able to handle such practical issues and is solved using an improved Artificial Bee Colony algorithm based on a fuzzy random simulation. A case study is presented to illustrate the effectiveness of the proposed approach. Conclusions and future research directions are discussed.

Keywords: Construction supply chain management, bi-level programming, ABC program., fuzzy random variable, production-distribution planning.

Mathematics Subject Classification: Primary: 90C90, 90B9.

Citation: Jiuping Xu, Pei Wei. Production-distribution planning of construction supply chain management under fuzzy random environment for large-scale construction projects. Journal of Industrial and Management Optimization, 2013, 9 (1) : 31-56. doi: 10.3934/jimo.2013.9.31

References:

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[2]	G. Avninder, Determining loading dock requirements in production-distribution facilities under uncertainty, Computers & Industrial Engineering, 57 (2009), 161-168. doi: 10.1016/j.cie.2008.11.002.
[3]	B. Akay and D. Karaboga, "A modified Artificial Bee Colony Algorithm for Real-Parameter Optimization," Information Sciences, Article in Press, Corrected Proof, 2010.
[4]	I. Averbakh, On-line integrated production-distribution scheduling problems with capacitated deliveries, European Journal of Operational Research, 200 (2010), 377-384. doi: 10.1016/j.ejor.2008.12.030.
[5]	O. Ben-Ayed, D. E. Boyce and C. E. Blair, A general bilevel linear programming formulation of the network design problem, Transportation Research Part B: Methodological, 22 (1988), 311-318. doi: 10.1016/0191-2615(88)90006-9.
[6]	B. Bilgen and I. Ozkarahan, Strategic, tactical and operational production-distribution models: A review, International Journal of Technology Management, 28 (2004), 151-171. doi: 10.1504/IJTM.2004.005059.
[7]	D. Barnes-Schuster, Y. Bassok and R. Anupindi, Optimizing delivery lead time/inventory placement in a two-stage production/distribution system, European Journal of Operational Research, 174 (2006), 1664-1684. doi: 10.1016/j.ejor.2002.08.002.
[8]	B. Bilgen, Application of fuzzy mathematical programming approach to the production allocation and distribution supply chain network problem, Expert Systems with Applications, 37 (2010), 4488-4495. doi: 10.1016/j.eswa.2009.12.062.
[9]	A. Cox and P. Ireland, Managing construction supply chains: The common sense approach, Engineering, Construction and Architectural Management, 9 (2002), 409-418.
[10]	M. Cheong, R. Bhatnagar and S. Graves, Logistics network design with supplier consolidation hubs and multiple shipment options, Journal of Industrial and Management Optimization, 3 (2007), 51-69. doi: 10.3934/jimo.2007.3.51.
[11]	F. Cheng, S. Yang, R. Akella and X. Tang, An integrated approach for selection of service vendors in service supply chain, Journal of Industrial and Management Optimization, 7 (2011), 907-925. doi: 10.3934/jimo.2011.7.907.
[12]	H. I. Calvete, C. Galé and M. Oliveros, Bilevel model for production-distribution planning solved by using ant colony optimization, Computers & Operations Research, 38 (2011), 320-327. doi: 10.1016/j.cor.2010.05.007.
[13]	K. Das and S. Sengupta, A hierarchical process industry production-distribution planning model, International Journal of Production Economics, 117 (2009), 402-419. doi: 10.1016/j.ijpe.2008.12.003.
[14]	O. Dey and D. Chakraborty, A fuzzy random continuous review inventory system, International Journal of Production Economics, 132 (2011), 101-106. doi: 10.1016/j.ijpe.2011.03.015.
[15]	S. S. Erenguc, N. C. Simpson and A. J. Vakharia, Integrated production/distribution planning in supply chains: An invited review, European Journal of Operational Research, 115 (1999), 219-236. doi: 10.1016/S0377-2217(98)90299-5.
[16]	H. Farvaresh and M. M. Sepehri, A single-level mixed integer linear formulation for a bi-level discrete network design problem, Transportation Research Part E: Logistics and Transportation Review, 47 (2011), 623-640. doi: 10.1016/j.tre.2011.02.001.
[17]	S. Heilpern, The expected value of a fuzzy number, Fuzzy Sets and Systems, 47 (1992), 81-86. doi: 10.1016/0165-0114(92)90062-9.
[18]	G. Hua, S. Wang and C. K. Chan, A Fractional programming model for internation facility location, Journal of Industrial and Management Optimization, 5 (2009), 629-649. doi: 10.3934/jimo.2009.5.629.
[19]	J. S. Hu, H. Zheng, R. Q. Xu, Y. P. Ji and C. Y. Guo, Supply chain coordination for fuzzy random newsboy problem with imperfect quality, International Journal of Approximate Reasoning, 51 (2010), 771-784. doi: 10.1016/j.ijar.2010.04.002.
[20]	H. Kwakernaak, Fuzzy random variables-I. definitions and theorems, Information Science, 15 (1978), 1-29. doi: 10.1016/0020-0255(78)90019-1.
[21]	H. Kwakernaak, Fuzzy random variables-II. Algorithms and examples for the discrete case, Information Science, 17 (1979), 253-278. doi: 10.1016/0020-0255(79)90020-3.
[22]	R. Kruse and K. D. Meyer, "Statistics with Vague Data," Reidel Publishing Company, Dordrecht, 1987. doi: 10.1007/978-94-009-3943-1.
[23]	D. Karaboga, "An Idea Based on Honey Bee Swarm for Numerical Optimization," Technical Report TR06, Computer Engineering Department, Erciyes University, Turkey, 2005.
[24]	D. Karaboga and B. Basturk, A powerful and efficient algorithm for numerical function optimization: Artificial bee colony (ABC) algorithm, Journal of Global Optimization, 39 (2007), 459-471. doi: 10.1007/s10898-007-9149-x.
[25]	D. Karaboga and B. Basturk, On the performance of artificial bee colony (ABC) algorithm, Applied Soft Computing, 8 (2008), 687-697. doi: 10.1016/j.asoc.2007.05.007.
[26]	Ö. Kabak and F. Ülengin, Possibilistic linear-programming approach for supply chain networking decisions, European Journal of Operational Research, 209 (2011), 253-264. doi: 10.1016/j.ejor.2010.09.025.
[27]	K. A. London and R. Kenley, An industrial organization economic supply chain approach for the construction industry: A review, Construction Management and Economics, 19 (2001), 777-788. doi: 10.1080/01446190110081699.
[28]	Y. H. Lee and S. H. Kim, Production-distribution planning in supply chain considering capacity constraints, Computers & Industrial Engineering, 43 (2002), 169-190. doi: 10.1016/S0360-8352(02)00063-3.
[29]	T. F. Liang,, Fuzzy multi-objective production/distribution planning decisions with multi-product and multi-time period in a supply chain, Computers & Industrial Engineering, 55 (2008), 676-694. doi: 10.1016/j.cie.2008.02.008.
[30]	Y. Lan, R. Zhao and W. Tang, Minimum risk criterion for uncertain production planning problems, Computers & Industrial Engineering, In Press, Corrected Proof, Available online 6, 2011.
[31]	X. Li, Z. Qin, L. Yang and K. Li, Entropy maximization model for the trip distribution problem with fuzzy and random parameters, Journal of Computational and Applied Mathematics, 235 (2011), 1906-1913. doi: 10.1016/j.cam.2010.09.004.
[32]	D. F. Pyke and M. A. Cohen, Multiproduct integrated production-distribution systems, European Journal of Operational Research, 74 (1994), 18-49. doi: 10.1016/0377-2217(94)90201-1.
[33]	A. M. Sarmiento and R. Nagi, A review of integrated analysis of production-distribution systems, IIE Transactions, 31 (1999), 1061-1074. doi: 10.1080/07408179908969907.
[34]	H. Selim, C. Araz and I. Ozkarahan, Collaborative production-distribution planning in supply chain: A fuzzy goal programming approach, Transportation Research Part E: Logistics and Transportation Review, 44 (2008), 396-419. doi: 10.1016/j.tre.2006.11.001.
[35]	C. J. Vidal and M. Goetschalckx, Strategic production-distribution models: A critical review with emphasis on global supply chain models, European Journal of Operational Research, 98 (1997), 1-18. doi: 10.1016/S0377-2217(97)80080-X.
[36]	D. Vila, A. Martel and R. Beauregard, Taking market forces into account in the design of production-distribution networks: A positioning by anticipation approach, Journal of Industrial and Management Optimization, 2 (2006), 255-268.
[37]	J. Xu and Z. Zeng, A discrete time optimal control model with uncertainty for dynamic machine allocation problem and its application to manufacturing and construction industries,, Applied Mathematical Modelling., (). doi: 10.1016/j.apm.2011.10.031.
[38]	Q. Liu and J. Xu, A study on facility location-allocation problem in mixed random and fuzzy environment, Journal of Intelligent Manufacturing, 22 (2011), 389-398. doi: 10.1007/s10845-009-0297-3.
[39]	J. Xu, X. Zhou and S. Li, A class of chance constrained multi-objective portfolio selection model under fuzzy random environment, Journal of Optimization Theory and Applications, 150 (2011), 530-552.
[40]	J. Xu, L. Yao and X. Zhao, A multi-objective chance-constrained network optimal model with random fuzzy coefficients and its application to logistics distribution center location problem, Fuzzy Optimization and Decision Making, 10 (2011), 255-285.
[41]	J. Xu, F. Yan ans S. Li, Vehicle routing optimization with soft time windows in a fuzzy random environment, Transportation Research Part E: Logistics and Transportation Review, 47 (2011), 1075-1091. doi: 10.1016/j.tre.2011.04.002.
[42]	J. Xu and X. Zhou, "Fuzzy-Like Multiple Objective Decision Making," Springer, Berlin Heidelberg, 2011.
[43]	M. Yao, J. Lin and C. Yang, An integrated approach for the operations of distribution and lateral transshipment for seasonal products - A case study in household product industry, Journal of Intdustrial and Management Optimization, 7 (2011), 401-424. doi: 10.3934/jimo.2011.7.401.
[44]	G. Zhang, J. Shang and W. Li, Collaborative production planning of supply chain under price and demand uncertainty, European Journal of Operational Research, 215 (2011), 590-603. doi: 10.1016/j.ejor.2011.07.007.
[45]	J. Zhang and J. Chen, Externality of contracts on supply chains with two suppliers and a common retailer, Journal of Industrial and Management Optimization, 6 (2010), 795-810. doi: 10.3934/jimo.2010.6.795.

show all references

References:

[1]	R. Arbulu, I. Tommelein, K. Walsh and J. Hershauer, Value stream analysis of re-engineered construction supply chain, Building Research & Information, 31 (2003), 161-171. doi: 10.1080/09613210301993.
[2]	G. Avninder, Determining loading dock requirements in production-distribution facilities under uncertainty, Computers & Industrial Engineering, 57 (2009), 161-168. doi: 10.1016/j.cie.2008.11.002.
[3]	B. Akay and D. Karaboga, "A modified Artificial Bee Colony Algorithm for Real-Parameter Optimization," Information Sciences, Article in Press, Corrected Proof, 2010.
[4]	I. Averbakh, On-line integrated production-distribution scheduling problems with capacitated deliveries, European Journal of Operational Research, 200 (2010), 377-384. doi: 10.1016/j.ejor.2008.12.030.
[5]	O. Ben-Ayed, D. E. Boyce and C. E. Blair, A general bilevel linear programming formulation of the network design problem, Transportation Research Part B: Methodological, 22 (1988), 311-318. doi: 10.1016/0191-2615(88)90006-9.
[6]	B. Bilgen and I. Ozkarahan, Strategic, tactical and operational production-distribution models: A review, International Journal of Technology Management, 28 (2004), 151-171. doi: 10.1504/IJTM.2004.005059.
[7]	D. Barnes-Schuster, Y. Bassok and R. Anupindi, Optimizing delivery lead time/inventory placement in a two-stage production/distribution system, European Journal of Operational Research, 174 (2006), 1664-1684. doi: 10.1016/j.ejor.2002.08.002.
[8]	B. Bilgen, Application of fuzzy mathematical programming approach to the production allocation and distribution supply chain network problem, Expert Systems with Applications, 37 (2010), 4488-4495. doi: 10.1016/j.eswa.2009.12.062.
[9]	A. Cox and P. Ireland, Managing construction supply chains: The common sense approach, Engineering, Construction and Architectural Management, 9 (2002), 409-418.
[10]	M. Cheong, R. Bhatnagar and S. Graves, Logistics network design with supplier consolidation hubs and multiple shipment options, Journal of Industrial and Management Optimization, 3 (2007), 51-69. doi: 10.3934/jimo.2007.3.51.
[11]	F. Cheng, S. Yang, R. Akella and X. Tang, An integrated approach for selection of service vendors in service supply chain, Journal of Industrial and Management Optimization, 7 (2011), 907-925. doi: 10.3934/jimo.2011.7.907.
[12]	H. I. Calvete, C. Galé and M. Oliveros, Bilevel model for production-distribution planning solved by using ant colony optimization, Computers & Operations Research, 38 (2011), 320-327. doi: 10.1016/j.cor.2010.05.007.
[13]	K. Das and S. Sengupta, A hierarchical process industry production-distribution planning model, International Journal of Production Economics, 117 (2009), 402-419. doi: 10.1016/j.ijpe.2008.12.003.
[14]	O. Dey and D. Chakraborty, A fuzzy random continuous review inventory system, International Journal of Production Economics, 132 (2011), 101-106. doi: 10.1016/j.ijpe.2011.03.015.
[15]	S. S. Erenguc, N. C. Simpson and A. J. Vakharia, Integrated production/distribution planning in supply chains: An invited review, European Journal of Operational Research, 115 (1999), 219-236. doi: 10.1016/S0377-2217(98)90299-5.
[16]	H. Farvaresh and M. M. Sepehri, A single-level mixed integer linear formulation for a bi-level discrete network design problem, Transportation Research Part E: Logistics and Transportation Review, 47 (2011), 623-640. doi: 10.1016/j.tre.2011.02.001.
[17]	S. Heilpern, The expected value of a fuzzy number, Fuzzy Sets and Systems, 47 (1992), 81-86. doi: 10.1016/0165-0114(92)90062-9.
[18]	G. Hua, S. Wang and C. K. Chan, A Fractional programming model for internation facility location, Journal of Industrial and Management Optimization, 5 (2009), 629-649. doi: 10.3934/jimo.2009.5.629.
[19]	J. S. Hu, H. Zheng, R. Q. Xu, Y. P. Ji and C. Y. Guo, Supply chain coordination for fuzzy random newsboy problem with imperfect quality, International Journal of Approximate Reasoning, 51 (2010), 771-784. doi: 10.1016/j.ijar.2010.04.002.
[20]	H. Kwakernaak, Fuzzy random variables-I. definitions and theorems, Information Science, 15 (1978), 1-29. doi: 10.1016/0020-0255(78)90019-1.
[21]	H. Kwakernaak, Fuzzy random variables-II. Algorithms and examples for the discrete case, Information Science, 17 (1979), 253-278. doi: 10.1016/0020-0255(79)90020-3.
[22]	R. Kruse and K. D. Meyer, "Statistics with Vague Data," Reidel Publishing Company, Dordrecht, 1987. doi: 10.1007/978-94-009-3943-1.
[23]	D. Karaboga, "An Idea Based on Honey Bee Swarm for Numerical Optimization," Technical Report TR06, Computer Engineering Department, Erciyes University, Turkey, 2005.
[24]	D. Karaboga and B. Basturk, A powerful and efficient algorithm for numerical function optimization: Artificial bee colony (ABC) algorithm, Journal of Global Optimization, 39 (2007), 459-471. doi: 10.1007/s10898-007-9149-x.
[25]	D. Karaboga and B. Basturk, On the performance of artificial bee colony (ABC) algorithm, Applied Soft Computing, 8 (2008), 687-697. doi: 10.1016/j.asoc.2007.05.007.
[26]	Ö. Kabak and F. Ülengin, Possibilistic linear-programming approach for supply chain networking decisions, European Journal of Operational Research, 209 (2011), 253-264. doi: 10.1016/j.ejor.2010.09.025.
[27]	K. A. London and R. Kenley, An industrial organization economic supply chain approach for the construction industry: A review, Construction Management and Economics, 19 (2001), 777-788. doi: 10.1080/01446190110081699.
[28]	Y. H. Lee and S. H. Kim, Production-distribution planning in supply chain considering capacity constraints, Computers & Industrial Engineering, 43 (2002), 169-190. doi: 10.1016/S0360-8352(02)00063-3.
[29]	T. F. Liang,, Fuzzy multi-objective production/distribution planning decisions with multi-product and multi-time period in a supply chain, Computers & Industrial Engineering, 55 (2008), 676-694. doi: 10.1016/j.cie.2008.02.008.
[30]	Y. Lan, R. Zhao and W. Tang, Minimum risk criterion for uncertain production planning problems, Computers & Industrial Engineering, In Press, Corrected Proof, Available online 6, 2011.
[31]	X. Li, Z. Qin, L. Yang and K. Li, Entropy maximization model for the trip distribution problem with fuzzy and random parameters, Journal of Computational and Applied Mathematics, 235 (2011), 1906-1913. doi: 10.1016/j.cam.2010.09.004.
[32]	D. F. Pyke and M. A. Cohen, Multiproduct integrated production-distribution systems, European Journal of Operational Research, 74 (1994), 18-49. doi: 10.1016/0377-2217(94)90201-1.
[33]	A. M. Sarmiento and R. Nagi, A review of integrated analysis of production-distribution systems, IIE Transactions, 31 (1999), 1061-1074. doi: 10.1080/07408179908969907.
[34]	H. Selim, C. Araz and I. Ozkarahan, Collaborative production-distribution planning in supply chain: A fuzzy goal programming approach, Transportation Research Part E: Logistics and Transportation Review, 44 (2008), 396-419. doi: 10.1016/j.tre.2006.11.001.
[35]	C. J. Vidal and M. Goetschalckx, Strategic production-distribution models: A critical review with emphasis on global supply chain models, European Journal of Operational Research, 98 (1997), 1-18. doi: 10.1016/S0377-2217(97)80080-X.
[36]	D. Vila, A. Martel and R. Beauregard, Taking market forces into account in the design of production-distribution networks: A positioning by anticipation approach, Journal of Industrial and Management Optimization, 2 (2006), 255-268.
[37]	J. Xu and Z. Zeng, A discrete time optimal control model with uncertainty for dynamic machine allocation problem and its application to manufacturing and construction industries,, Applied Mathematical Modelling., (). doi: 10.1016/j.apm.2011.10.031.
[38]	Q. Liu and J. Xu, A study on facility location-allocation problem in mixed random and fuzzy environment, Journal of Intelligent Manufacturing, 22 (2011), 389-398. doi: 10.1007/s10845-009-0297-3.
[39]	J. Xu, X. Zhou and S. Li, A class of chance constrained multi-objective portfolio selection model under fuzzy random environment, Journal of Optimization Theory and Applications, 150 (2011), 530-552.
[40]	J. Xu, L. Yao and X. Zhao, A multi-objective chance-constrained network optimal model with random fuzzy coefficients and its application to logistics distribution center location problem, Fuzzy Optimization and Decision Making, 10 (2011), 255-285.
[41]	J. Xu, F. Yan ans S. Li, Vehicle routing optimization with soft time windows in a fuzzy random environment, Transportation Research Part E: Logistics and Transportation Review, 47 (2011), 1075-1091. doi: 10.1016/j.tre.2011.04.002.
[42]	J. Xu and X. Zhou, "Fuzzy-Like Multiple Objective Decision Making," Springer, Berlin Heidelberg, 2011.
[43]	M. Yao, J. Lin and C. Yang, An integrated approach for the operations of distribution and lateral transshipment for seasonal products - A case study in household product industry, Journal of Intdustrial and Management Optimization, 7 (2011), 401-424. doi: 10.3934/jimo.2011.7.401.
[44]	G. Zhang, J. Shang and W. Li, Collaborative production planning of supply chain under price and demand uncertainty, European Journal of Operational Research, 215 (2011), 590-603. doi: 10.1016/j.ejor.2011.07.007.
[45]	J. Zhang and J. Chen, Externality of contracts on supply chains with two suppliers and a common retailer, Journal of Industrial and Management Optimization, 6 (2010), 795-810. doi: 10.3934/jimo.2010.6.795.

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