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

Nguyen Vu Quynh Nhu and Nguyen Van Hop

International Journal of Logistics Systems and Management, 2024, vol. 48, issue 2, 279-295

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. (search for similar items in EconPapers)
Date: 2024
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