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.
Lalmazloumian, M., Wong, K. Y., Govindan, K., & Kannan, D. (2016). A robust optimization model for agile and build-to-order supply chain planning under uncertainties. Annals of Operations Research, 240(2), 435–470. https://doi.org/10.1007/s10479-013-1421-5