A Credibility Approach to Multi-Period Fuzzy Production and Sourcing Problem

In this paper, we consider a multi-period fuzzy production and sourcing problem that a manufacturer has a number of plants and subcontractors. Each source has a different production cost and capacity. The manufacturer has to meet the products demand according to the service level requirements set by its customers. Based on credibility theory, a new class of minimum risk production planning model is first proposed. Then we deal with the approximation of the fuzzy production planning problem with credibility service level constraints with minimum risk criteria. After that, a hybrid algorithm, which integrates approximation approach and particle swarm optimization algorithm, is designed to solve the proposed production planning problem, and a numerical example is provided to test the effectiveness of the hybrid algorithm.