A Chance Constarint Approach For Supply Chain Management Problem with Stochastic Demands and Shrinkages From Production to Distribution Echelons

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this study, optimization of multi-echelon defective supply chain management (SCM) model with stochastic demands and shrinkages representing randomness at each echelon from purchasing raw materials to distributing the final products has been studied and proposed. At proposed multi-echelon SCM model, stochastic structure of shrinkages and demands has been transformed to deterministic structure by using stochastical methods, developed with chance constraint programming and analyzed on a real-life multi-echelon SCM example to support the decision makers’ decisions. Pre-determined service level and stochastic structure of problem have to be cared by decision makers; otherwise, purchasing of raw materaials, production of final products and also vendors or customers demands would not be satisfied and a roboust SCM can not be carried out.

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Stochastic Programming , Multi , echelon Supply Chain Management , Chance Constraint Programming

Erciyes University Journal Of The Institute Of Science an‎d Technology

115

Erciyes University Journal Of The Institute Of Science an‎d Technology