A robust stochastic programming approach for agile and responsive logistics under operational and disruption risks. Issue 4 (1st November 2012)

• Record Type: Journal Article
• Authors: Babazadeh, Reza; Razmi, Jafar
• Is Part Of: International journal of logistics systems and management. Volume 13:Issue 4(2012)
• Page Start: 458
• Page End: 482
• Publication Date: 2012-11-01
• Subjects: robust optimisation -- agile and responsive supply chain network design -- uncertainty -- outsourcing -- logistics systems and management; Business logistics -- Periodicals; 658.5005
• Languages: English
• ISSNs: 1742-7967

Abstract

High turbulences and fluctuations of today's competitive business environments have put organisations under pressure to move toward efficient competitive strategy and seek competent approach to design their supply chain network under uncertainty. At the same line, this paper presents an efficient mixed integer linear programming (MILP) model that is able to consider the key characteristics of agile supply chain, which is the best competitive strategy for high turbulent environments, such as direct shipments, outsourcing, different transportation modes, discount, alliance (process and information integration) between opened facilities and maximum waiting time of customers for deliveries. Additionally, the robust stochastic programming approach is applied to handle both operational and disruption risks of the agile supply chain network. Computational results show that the robust model is capable to result efficient solutions under scenario realisations with low cost variability contrary to deterministic model.