TITLE

Robust optimization approach for an aggregate production-distribution planning in a three-level supply chain

AUTHOR(S)
Niknamfar, Amir; Niaki, Seyed; Pasandideh, Seyed
PUB. DATE
January 2015
SOURCE
International Journal of Advanced Manufacturing Technology;Jan2015, Vol. 76 Issue 1-4, p623
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
An aggregate production-distribution (P-D) planning generates an aggregate plan for regular time, overtime, outsourcing, hiring, and firing that takes into account distributing, inventory holding, backordering, and machine capacity for a definite planning horizon. A large number of P-D problems require decisions to be made in the presence of uncertainty. Previous research on this topic mainly utilized either stochastic programming or fuzzy programming to cope with the uncertainty. This may lead into huge challenges for supply chain managers that use non-robust P-D planning in uncertain environments. Moreover, there has been little discussion about robust optimization approach in aggregate P-D problems so far.Therefore, the aim of this paper is to develop robust optimization in P-D planning in order to minimize the total cost of a three-level supply chain including multiple production facilities, multiple distribution centers, and multiple customer zones with uncertain parameters in terms of a limited set of discrete future economic scenarios. These scenarios are associated with probabilities in an industrial case study. In addition, a trade-off between solution robustness and model robustness using specified weight is studied, and a sensitivity analysis for this trade-off is implemented. Finally, the applicability of the proposed methodology is demonstrated.
ACCESSION #
100490261

 

Related Articles

  • E-retail: Big Billion Business for Logistics Service Providers. Rajgor, Rajesh // Commercial Vehicle;Nov2014, Vol. 9 Issue 2, p56 

    The article discusses supply chain management opportunities for Indian logistics service providers (LSPs) created by the advance of electronic commerce. Topics addressed include investments in Indian logistics operations made by online retailers such as Flipkart, Amazon, and Snapdeal, the...

  • Outsourced Services Add Spice to the Business. Morton, Roger // Logistics Today;Jun2007, Vol. 48 Issue 6, p24 

    The article focuses on the advantages of retail outsourcing. As retail sourcing increasingly looks for advantages offshore, so the challenges of getting and maintaining control of the supply chain grow as well, thus, thoughtful examination of company core values and competencies are essential to...

  • LIFE SCIENCES NEED AN OUTSOURCING HEALTH CHECK. Formanek, Kay // Supply Chain Europe;Nov2010, Vol. 19 Issue 6, p28 

    The article discusses the outsourcing distribution at the life sciences industry in Europe. It also explores the impact of outsourcing in the areas of market access, customer experience, revenue streams and supply chain agility. It presents several case studies which include the one on the...

  • Learning to let go. Baker, John; Boswell, Clay // ICIS Chemical Business;11/20/2006, Vol. 1 Issue 44, p30 

    This article provides information on an array of models for outsourcing logistics. Most majors have already accepted that third-party logistics is preferable to in-house operations, because supply-chain management is not a core competency of the chemicals industry. But there is still debate and...

  • Make AIR CARGO Part of the Supply Chain. SHACKLETT, MARY // World Trade: WT100;Jul2014, Vol. 27 Issue 7, p16 

    The article discusses air cargo's role in the modal mix of a supply chain. Topics addressed include the increasing fuel efficiency of air cargo fleets, the use of air cargo when time is critical in routing product designs or prototypes to manufacturing destinations, and challenges relating to...

  • Asda be Clipper.  // Logistics Manager;Oct2009, p31 

    The article presents a case study of the selection of Clipper Logistics by Asda to handle fulfilment for its Asda/George Direct online business. Clipper Logistics is responsible for processing and distributing orders from Asda/George Direct sites and delivering products to customers in Great...

  • The Emerging Global Direct Distribution Business Model: Industry and Research Opportunities. Shong-Iee Ivan Su // Transportation Journal (American Society of Transportation & Log;Fall2007, Vol. 46 Issue 4, p58 

    In this article the author examines an international supply chain model that differs from traditional examples. According to the author, in order to meet increased customer demand direct shipment plans and just-in-time methods were needed to reduce production time and to increase productivity....

  • Stochastic programming for vendor portfolio selection and order allocation under delivery uncertainty. Lee, Chia-Yen; Chien, Chen-Fu // OR Spectrum;Jul2014, Vol. 36 Issue 3, p761 

    Outsourcing has been employed in supply chain management to reduce capital investment, enhance flexibility, reduce manufacturing cost, shorten cycle time, and improve service quality. This study aims to propose a portfolio optimization model considering risk diversification and delivery...

  • Outsourcing: The transport. Davies, Malory // Director (00123242);Aug95, Vol. 49 Issue 1, p41 

    Makes various observations about outsourcing of distribution in Great Britain. Cost effectiveness; Retailers supplying their stores by distribution contractors; Considerations in preparing invitations to tenders.

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics