Application of facility location problems and scenario analysis in distribution network optimization

DOI: https://doi.org/10.55228/JTST150204

Keywords

Multi-objective facility location problem, Fuzzy mixed-integer linear programming, Scenario analysis, Exact algorithms, Meta-heuristic algorithms

Abstract

This study addresses a multi-objective Facility Location Problem (FLP) to optimize supply chain and logistics network design in Vietnam. The proposed framework is formulated as a Fuzzy Mixed-Integer Linear Programming (FMILP) model and solved using a combination of exact and meta-heuristic algorithms, along with scenario-based analysis to address uncertainty. The model is empirically validated using real-world operational data from a logistics enterprise in Hai Phong, incorporating demand information, candidate warehouse locations, and system constraints. The results indicate that the proposed model significantly reduces logistics costs (a 23.6% reduction in operating costs and a 17.8% reduction in total travel distance), shortens delivery time, and improves service performance (a 7% increase in demand fulfillment rate). These findings confirm the effectiveness of the FMILP-based FLP model and highlight its potential for supporting sustainable and data-driven logistics development in Vietnam

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