Relocatable modular capacities in risk aware strategic supply network planning under demand uncertainty
Abstract We propose a new model formulation for a three-echelon supply network design problem incorporating the concept of relocatable modular capacities. A robust supply network configuration must be determined based on uncertain demand. Furthermore, by incorporating the conditional value at risk (...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Springer
2022-11-01
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| Series: | Schmalenbach Journal of Business Research |
| Subjects: | |
| Online Access: | https://doi.org/10.1007/s41471-022-00141-z |
| _version_ | 1797840945546264576 |
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| author | Ariane Kayser Florian Sahling |
| author_facet | Ariane Kayser Florian Sahling |
| author_sort | Ariane Kayser |
| collection | DOAJ |
| description | Abstract We propose a new model formulation for a three-echelon supply network design problem incorporating the concept of relocatable modular capacities. A robust supply network configuration must be determined based on uncertain demand. Furthermore, by incorporating the conditional value at risk (CVaR), the risk induced by uncertain demand is explicitly considered. The derived supply network configuration should maximize the weighted sum of the expected net present value and the CVaR. The resulting nonlinear model formulation is approximated by a piecewise linearization. Our numerical investigation shows that the derived supply network configuration is robust and stable in the presence of uncertain demand. |
| first_indexed | 2024-04-09T16:23:02Z |
| format | Article |
| id | doaj.art-949ac1d0280d4a099d5ec02fc2124971 |
| institution | Directory Open Access Journal |
| issn | 2366-6153 |
| language | English |
| last_indexed | 2024-04-09T16:23:02Z |
| publishDate | 2022-11-01 |
| publisher | Springer |
| record_format | Article |
| series | Schmalenbach Journal of Business Research |
| spelling | doaj.art-949ac1d0280d4a099d5ec02fc21249712023-04-23T11:24:16ZengSpringerSchmalenbach Journal of Business Research2366-61532022-11-0175113510.1007/s41471-022-00141-zRelocatable modular capacities in risk aware strategic supply network planning under demand uncertaintyAriane Kayser0Florian Sahling1Department of Production Management, Leibniz Universität HannoverChair of Production Management, University of KaiserslauternAbstract We propose a new model formulation for a three-echelon supply network design problem incorporating the concept of relocatable modular capacities. A robust supply network configuration must be determined based on uncertain demand. Furthermore, by incorporating the conditional value at risk (CVaR), the risk induced by uncertain demand is explicitly considered. The derived supply network configuration should maximize the weighted sum of the expected net present value and the CVaR. The resulting nonlinear model formulation is approximated by a piecewise linearization. Our numerical investigation shows that the derived supply network configuration is robust and stable in the presence of uncertain demand.https://doi.org/10.1007/s41471-022-00141-zSupply network reconfigurationModular capacitiesStochastic demandConditional value at risk |
| spellingShingle | Ariane Kayser Florian Sahling Relocatable modular capacities in risk aware strategic supply network planning under demand uncertainty Schmalenbach Journal of Business Research Supply network reconfiguration Modular capacities Stochastic demand Conditional value at risk |
| title | Relocatable modular capacities in risk aware strategic supply network planning under demand uncertainty |
| title_full | Relocatable modular capacities in risk aware strategic supply network planning under demand uncertainty |
| title_fullStr | Relocatable modular capacities in risk aware strategic supply network planning under demand uncertainty |
| title_full_unstemmed | Relocatable modular capacities in risk aware strategic supply network planning under demand uncertainty |
| title_short | Relocatable modular capacities in risk aware strategic supply network planning under demand uncertainty |
| title_sort | relocatable modular capacities in risk aware strategic supply network planning under demand uncertainty |
| topic | Supply network reconfiguration Modular capacities Stochastic demand Conditional value at risk |
| url | https://doi.org/10.1007/s41471-022-00141-z |
| work_keys_str_mv | AT arianekayser relocatablemodularcapacitiesinriskawarestrategicsupplynetworkplanningunderdemanduncertainty AT floriansahling relocatablemodularcapacitiesinriskawarestrategicsupplynetworkplanningunderdemanduncertainty |