A fuzzy c-means based hybrid evolutionary approach to the clustering of supply chain

• An approach to organise supply chain network into manageable clusters is proposed.
• Fuzzy c-means is enhanced by genetic algorithm and tabu search.
• Fuzzy c-means parameters can be dynamically determined and optimised.
• New validity index for fuzzy c-means is proposed.

This paper describes the work that adapts group technology and integrates it with fuzzy c-means, genetic algorithms and the tabu search to realize a fuzzy c-means based hybrid evolutionary approach to the clustering of supply chains. The proposed hybrid approach is able to organise supply chain units, transportation modes and work orders into different unit-transportation-work order families. It can determine the optimal clustering parameter, namely the number of clusters, c, and weighting exponent, m, dynamically, and is able to eliminate the necessity of pre-defining suitable values for these clustering parameters. A new fuzzy c-means validity index that takes into account inter-cluster transportation and group efficiency is formulated. It is employed to determine the promise level that estimates how good a set of clustering parameters is. The capability of the proposed hybrid approach is illustrated using three experiments and the comparative studies. The results show that the proposed hybrid approach is able to suggest suitable clustering parameters and near optimal supply chain clusters can be obtained readily.