Central Distribution Center Network Design By The Integration Of Hybrid Fuzzy Mcdm And Modm: A Case Study In Dairy Company

Abstract

Over the past few years, milk and dairy products have significantly contributed to the development of Vietnamese children. In addition, the projection of total dairy products volume will increase considerably in the following years, meaning the comsumption of Vietnamese children for dairy products is extremely high. Therefore, there is a need for a strong and sustainable supply chain network to ensure the future projected demand. Central distribution center (CDC) plays an important role in distributing goods to different locations and the optimal CDC should be selected to achieve the optimal supply chain network. This study aims to select the approriate CDC for dairy companies and design the general distribution network by combining the multi criteria decision-making method (MCDM) and Multi-objective decision-making method (MODM). The fuzzy DEMATEL in MCDM is first utilized to collect the critical success factors (CSFs) among different factors, then fuzzy AHP is applied to identify CSFs weight and the alternative selection is conducted by fuzzy TOPSIS method. The selected CDC then becomes an input of MODM model to adapt new supply network design. The findings of this research propose a recommendation for one dairy company whose case is analysed in detail.