Title of article
Robust supplychaindesignunderuncertaindemandinagilemanufacturing
Author/Authors
Feng Pan، نويسنده , , RakeshNagi، نويسنده ,
Issue Information
ماهنامه با شماره پیاپی سال 2010
Pages
16
From page
668
To page
683
Abstract
This paperconsidersasupplychaindesignproblemforanewmarketopportunitywithuncertaindemand
in anagilemanufacturingsetting.Weconsidertheintegratedoptimizationoflogisticsandproduction
costs associatedwiththesupplychainmembers.Theseproblemsroutinelyoccurinawidevarietyof
industries includingsemiconductormanufacturing,multi-tierautomotivesupplychains,andconsumer
appliances tonameafew.Therearetwotypesofdecisionvariables:binaryvariablesforselectionof
companies toformthesupplychainandcontinuousvariablesassociatedwithproductionplanning.A
scenario approachisusedtohandletheuncertaintyofdemand.Theformulationisarobustoptimization
model withthreecomponentsintheobjectivefunction:expectedtotalcosts,costvariabilitydueto
demand uncertainty,andexpectedpenaltyfordemandunmetattheendoftheplanninghorizon.The
increase ofcomputationaltimewiththenumbersofechelonsandmembersperechelonnecessitatesa
heuristic. Aheuristicbasedona k-shortest pathalgorithmisdevelopedbyusingasurrogatedistanceto
denote theeffectivenessofeachmemberinthesupplychain.Theheuristiccanfindanoptimalsolution
very quicklyinsomesmall-andmedium-sizecases.Forlargeproblems,a“good”solutionwithasmall
gap relativetoourlowerboundisobtainedinashortcomputationaltime.
Keywords
Supply chain formation , Uncertain demand , Robust optimization , Integrated costs
Journal title
Computers and Operations Research
Serial Year
2010
Journal title
Computers and Operations Research
Record number
927680
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