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

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  • Nguyen Vu Quynh Nhu
  • Nguyen Van Hop

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.

Suggested Citation

  • Nguyen Vu Quynh Nhu & Nguyen Van Hop, 2024. "New fuzzy subtractive clustering approach: an application of order allocation in e-supply chain system," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 48(2), pages 279-295.
    • Handle: RePEc:ids:ijlsma:v:48:y:2024:i:2:p:279-295
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