A robust optimization model for agile and build-to-order supply chain planning under uncertainties

Morteza Lalmazloumian, Kuan Yew Wong, Kannan Govindan, D. Kannan

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

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.
Original languageEnglish
JournalAnnals of Operations Research
Volume240
Issue number2
Pages (from-to)435–470
ISSN0254-5330
DOIs
Publication statusPublished - 2016

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Uncertainty
Supply chain planning
Optimization model
Robust optimization
Build-to-order
Supply chain
Scenarios
Integrated
Guidance
Supply chain management
Service levels
Distribution costs
Mixed integer linear programming
Customer service
Manufacturing companies
Agile manufacturing
Production cost
Procurement
Costs
Multi-echelon

Cite this

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A robust optimization model for agile and build-to-order supply chain planning under uncertainties. / Lalmazloumian, Morteza; Wong, Kuan Yew; Govindan, Kannan; Kannan, D.

In: Annals of Operations Research, Vol. 240, No. 2, 2016, p. 435–470.

Research output: Contribution to journalJournal articleResearchpeer-review

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AU - Govindan, Kannan

AU - Kannan, D.

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