A Stochastic Approach for Designing Supply Chain Networks under Uncertainty. Issue 11 (2018)

• Record Type: Journal Article
• Authors: Azaron, Amir; Venkatadri, Uday; Doost, Alireza Farhang
• Is Part Of: IFAC-PapersOnLine. Volume 51:Issue 11(2018)
• Page Start: 1465
• Page End: 1469
• Publication Date: 2018
• Subjects: Supply Chain Management -- Operations Research -- Stochastic Programming; Automatic control -- Periodicals; 629.805
• DOI: 10.1016/j.ifacol.2018.08.307
• Languages: English
• ISSNs: 2405-8963

Abstract

Abstract: In this research, we develop a stochastic programming approach for multi-period supply chain design problems under uncertainty. The supply chain design problem involves making location and allocation decisions to support the required flows in a supply chain. It is assumed that the locations of facilities (manufacturing sites, warehouses and/or retailers) are determined at the strategic level, while selection of suppliers, production levels at manufacturing sites, inventory levels at warehouses, transportation modes and shipping quantities among the entities of the supply chain network over the planning horizon are all determined at the tactical level. Demands, processing, transportation and productions times at manufacturing sites are all considered as uncertain parameters following different distributions. To develop a robust model, an additional objective function is added into the model, which is the variance of the net present value of all cash flows.