A parametric assessment approach to solving facility-location problems with fuzzy demands

Pei Chun Lin, Junzo Watada, Berlin Wu

    Research output: Contribution to journalArticle

    9 Citations (Scopus)

    Abstract

    In real-world applications, sometimes randomness and fuzziness may coexist. In facility-location problems, the data expressed in natural language may contain vague information. We discuss the uncertainty included in demands in facility-location problems. The uncertain demand is called fuzzy demand in this paper. In the facility-location model, the parameters of fuzzy demand are determined by calculating the estimated expected value of the fuzzy demand, which is obtained by using the estimated parameters of the underlying probability distribution function of the fuzzy data. Moreover, we propose a defuzzification formula of the fuzzy demand called the realization of fuzzy demand. The defuzzification formula of fuzzy demand comprises the upper bound and the lower bound of the fuzzy demand. Moreover, the error of the fuzzy demand is assessed as the mean absolute percentage error of the fuzzy demand. Empirical studies show that we can solve real-life location problems by using the defuzzification formula of fuzzy demand and get higher profit in our facility-location model than by using conventional methods.

    Original languageEnglish
    Pages (from-to)484-493
    Number of pages10
    JournalIEEJ Transactions on Electrical and Electronic Engineering
    Volume9
    Issue number5
    DOIs
    Publication statusPublished - 2014

    Keywords

    • Fuzzy data
    • Fuzzy statistic
    • Location decision
    • Probability distribution function
    • Uncertain demand

    ASJC Scopus subject areas

    • Electrical and Electronic Engineering

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