A Fuzzy Set Approach for a Location-Inventory Model

<title>A<sc>bstract</sc> </title> In the supply chain, production and logistics facilities are positioned between the customer and supply markets. As a consequence, any changes in these markets should cause the enterprise to re-evaluate its location and the capacity of its activities at that particular location in the logistics network, which also means re-evaluating the parameters of input-output matrices for the entire supply chain. Different analytical approaches have been developed to describe the influence of production on the hierarchical spatial pattern. Our article presents a fuzzy set approach to the model of spatial hierarchy as a result of spatial interactions. We attempt to present the difference between net present value estimated by a fuzzy approach on the one hand and report on an analytical approach to the problem on the other.