Title: New fuzzy subtractive clustering approach: an application of order allocation in e-supply chain system

Authors: Nguyen Vu Quynh Nhu; Nguyen Van Hop

Addresses: School of Industrial Engineering and Management, International University VNU-HCMC, Quarter 6, Linh Trung Ward, Thu Duc District, Ho Chi Minh City, Vietnam ' School of Industrial Engineering and Management, International University VNU-HCMC, Quarter 6, Linh Trung Ward, Thu Duc District, Ho Chi Minh City, Vietnam

Abstract: This study proposes a so-called new fuzzy subtractive clustering (NFSC) algorithm to allocate orders to the appropriate hub with three criteria, namely, travelling distance, delivery time, order quantity. The main contribution of this paper is that the proposed clustering method improves the previous subtractive clustering algorithm by using mean squared error (MSE) instead of the ratio for accepting or rejecting cluster centres. Besides, the cluster radius is adapted automatically to get the minimum MSE with the fixed cluster centres in advance. A case study of a multinational company in Vietnam is investigated to compare the proposed algorithm with K-means clustering. The obtained results are very promising to give distinction clusters of delivery points.

Keywords: order allocation; K-means clustering; subtractive clustering.

DOI: 10.1504/IJLSM.2024.139961

International Journal of Logistics Systems and Management, 2024 Vol.48 No.2, pp.279 - 295

Received: 09 Jun 2021
Accepted: 20 Nov 2021
Published online: 15 Jul 2024 *

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