Selection ofadynamicsupplyportfolioinmake-to-order environment withrisks

The problemofamulti-periodsupplierselectionandorderallocationinmake-to-orderenvironmentin the presenceofsupplychaindisruptionanddelayrisksisconsidered.Givenasetofcustomerordersfor finishedproducts,thedecisionmakerneedstodecidefromwhichsupplierandwhentopurchase product-specificpartsrequiredforeachcustomerordertomeetcustomerrequestedduedateatalow cost andtomitigatetheimpactofsupplychainrisks.Theselectionofsuppliersandtheallocationof orders overtimeisbasedonpriceandqualityofpurchasedpartsandreliabilityofsupplies.For selectionofdynamicsupplyportfolioamixedintegerprogrammingapproachisproposedto incorporateriskthatusesconditionalvalue-at-riskviascenarioanalysis.Inthescenarioanalysis,the low-probabilityandhigh-impactsupplydisruptionsarecombinedwiththehighprobabilityandlow impact supplydelays.Theproposedapproachiscapableofoptimizingthedynamicsupplyportfolioby calculatingvalue-at-riskofcostperpartandminimizingexpectedworst-casecostperpart simultaneously.Numericalexamplesarepresentedandsomecomputationalresultsarereported.