In this paper, a location allocation (LA) problem in construction and demolition (C&D) waste management (WM) is studied. A bi-level model for this problem under a fuzzy random environment is presented where the upper level is the governments who sets up the processing centers, and the lower level are the administrators of different construction projects who control C&D waste and the after treatment materials supply. This model using an improved particle swarm optimization program based on a fuzzy random simulation (IPSO-based FRS) is able to handle practical issues. A case study is presented to illustrate the effectiveness of the proposed approach. Conclusions and future research directions are discussed.