A robust optimization model for agile and build-to-order supply chain planning under uncertainties
Supply chain planning as one of the most important processes within the supply chain management concept, has a great impact on firms’ success or failure. This paper considers a supply chain planning problem of an agile manufacturing company operating in a build-to-order environment under various kin...
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| Main Authors: | , , , |
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| Format: | Article |
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Springer New York LLC
2016
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| Subjects: | |
| Online Access: | http://eprints.utm.my/72608/ http://eprints.utm.my/72608/ |
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| Summary: | Supply chain planning as one of the most important processes within the supply chain management concept, has a great impact on firms’ success or failure. This paper considers a supply chain planning problem of an agile manufacturing company operating in a build-to-order environment under various kinds of uncertainty. An integrated optimization approach of procurement, production and distribution costs associated with the supply chain members has been taken into account. A robust optimization scenario-based approach is used to absorb the influence of uncertain parameters and variables. The formulation is a robust optimization model with the objective of minimizing the expected total supply chain cost while maintaining customer service level. The developed multi-product, multi-period, multi-echelon robust mixed-integer linear programming model is then solved using the CPLEX optimization studio and guidance related to future areas of research is given. |
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