University of Hertfordshire

This paper puts forward a location-routing problem with fuzzy demands (LRPFD). A fuzzy chance constrained programming (CCP) model is presented and a simulation-embedded simulated annealing (SA) algorithm is proposed to solve it. Moreover, an initialization heuristic is presented which is based on the well-known fuzzy c-means clustering algorithm. Numerical examples clearly show the effectiveness of the proposed solution procedure. In addition, the sensitivity analysis of the objective function based on the dispatcher preference index is presented.