Application of Fuzzy Mamdani Model for Cost Optimization in LPG Transshipment System

Abstract

A novel approach to product transshipment is presented in this paper. A heuristic fuzzy network is developed for modelling complex systems by describing the global behaviour of the structure. Managers on a daily basis are confronted with optimization problems which arise in manufacturing systems, oil, and gas sectors, bottling companies etc. Thus, there is need for efficient and robust computational algorithms which can solve these problems arising in different fields. Unfortunately, managers rely on classical methods while making allocation decision which does not guarantee optimal solution. In this study, fuzzy logic is applied by effectively designing and simulating an outbound system and creating membership functions and rules. The effectiveness of the proposed method is demonstrated using data from an LPG plant in Delta State. The company spent approximately 41,500NGN to supply products from source to two transshipment points using classical perception. The cost of distribution was quite high compared to result obtained by using fuzzy inference system (FIS). FIS gave a better solution of 32,790NGN. A total sum of 8,710NGN would have been saved using the Fuzzy inference system model developed. This method provides much faster response and accurate solution to cost optimization in transshipment operations.