Integrated production planning and warehouse layout problem under uncertainty; a robust possibilistic approach

This study investigates the joint production planning and warehouse layout under uncertainty. Today’s competitive business world needs to be investigated by models which are capable of considering uncertain nature of the problems, especially when the historical data is not available or the level of uncertainty is high. Joint production planning and warehouse layout problems is almost a novel and new area in both academics and practice. For warehousing problem, the eventually of rental warehouses and new allocations is enabled in each planning horizon period. A bi-objective MILP model is proposed and fuzzy distributed parameters and chance constraints are taken into considerations. One of the objective functions deals with the cost associated parameters and variables while the second one minimizes the fluctuations of the work labor in each planning period. A simple test problem along with a case study is investigated by the proposed model. The obtained results prove the applicability of the proposed model in real-world scale problems.