An Unsupervised Machine Learning-Based Framework for Transferring Local Factories into Supply Chain Networks

Mohd Fahmi Bin Mad Ali, Mohd Khairol Anuar Bin Mohd Ariffin, Faizal Bin Mustapha and Eris Elianddy Bin Supeni
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Mohd Fahmi Bin Mad Ali: Department of Mechanical and Manufacturing Engineering, Universiti Putra Malaysia, Serdang 43400, Malaysia
Mohd Khairol Anuar Bin Mohd Ariffin: Department of Mechanical and Manufacturing Engineering, Universiti Putra Malaysia, Serdang 43400, Malaysia
Faizal Bin Mustapha: Department of Mechanical and Manufacturing Engineering, Universiti Putra Malaysia, Serdang 43400, Malaysia
Eris Elianddy Bin Supeni: Department of Mechanical and Manufacturing Engineering, Universiti Putra Malaysia, Serdang 43400, Malaysia

Mathematics, 2021, vol. 9, issue 23, 1-31

Abstract: Transferring a local manufacturing company to a national-wide supply chain network with wholesalers and retailers is a significant problem in manufacturing systems. In this research, a hybrid PCA-K-means is used to transfer a local chocolate manufacturing firm near Kuala Lumpur into a national-wide supply chain. For this purpose, the appropriate locations of the wholesaler’s center points were found according to the geographical and population features of the markets in Malaysia. To this end, four wholesalers on the left island of Malaysia are recognized, which were located in the north area, right area, middle area, and south area. Similarly, two wholesalers were identified on the right island, which were in Sarawak and WP Labuan. In order to evaluate the performance of the proposed method, its outcomes are compared with other unsupervised-learning methods such as the WARD and CLINK methods. The outcomes indicated that K-means could successfully determine the best locations for the wholesalers in the supply chain network with a higher score (0.812).

Keywords: food supply chain; food distribution; design supply chain; unsupervised machine learning (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2021
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