Abstract
In this paper, the operation of a multi-product and multi-period supply chain involving one producer and one supplier with uncertain market demands and raw material price is considered. With variations in the market demands and raw material price described by using an interval uncertainty method, a multi-objective robust optimization model is established using a robust linear programming approach. A numerical example is used to verify the proposed model, and the optimum robust operating strategy is determined for worst case supply chain conditions during an uncertain market demands and raw material price. When robust measures are adopted in the objectives of supply chain coordination and profit was maximized for all participants, the effect of market demands and raw material price uncertainty on objective values decreased significantly.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Arns M, Fischer M, Kemper P, Tepper C (2002) Supply chain modeling and its analytical evaluation. J Oper Res Soc 53(4):885–894
Cheng-Liang C, Wen-Cheng L (2004) Multi-objective optimization of multi-echelon supply chain networks with uncertain product demands and prices. Comput Chem Eng 28(10):1131–1144
Christopher M, Towill DR (2002) Developing market specific supply chain strategies. Int J Phys Distrib Logist Manage 13(1):1–14
Davis T (1993) Effective supply chain management. Sloan Manage Rev 34(1):35–46
Dimitris B, Aurelie T (2006) A robust optimization approach to inventory theory. Oper Res 54(1):150–168
Dimitris B, Melvyn S (2004) The price of robustness. Oper Res 52(1):35–53
Geary S, Childerhouse P, Towill D (2002) Uncertainty and the seamless supply chain. Supply Chain Manage Rev 6(1):52–60
Kevin Weng Z, McClurg T (2003) Coordinated ordering decisions for short life cycle products with uncertainty in delivery time and demand. Eur J Oper Res 151(1):12–24
Kouvelis P, Milner J (2002) Supply chain capacity and outsourcing decision: the dynamic interplay of demand and supply uncertainty. IIE Trans 34(3):717–728
Lee H, Billington C (1993) Material management in decentralized supply chains. Oper Res 41(4):835–847
Van der Vorst J, Beulens A (2002) Identifying sources of uncertainty to generate supply chain redesign and strategies. Int J Phys Distrib Logist Manage 32(2):409–430
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Yu, Lp., Li, Lj., Huang, Xy. (2013). Multi-objective Robust Operation Model for a Supply Chain with Market Demands and Raw Material Price Uncertainty. In: Qi, E., Shen, J., Dou, R. (eds) The 19th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-37270-4_11
Download citation
DOI: https://doi.org/10.1007/978-3-642-37270-4_11
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-37269-8
Online ISBN: 978-3-642-37270-4
eBook Packages: Business and EconomicsBusiness and Management (R0)