A Robust Optimization Approach to Supply Chain Management
We propose a general methodology based on robust optimization to address the problem of optimally controlling a supply chain subject to stochastic demand in discrete time. The attractive features of the proposed approach are: (a) It incorporates a wide variety of phenomena, including demands that a...
| Main Authors: | , |
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| Format: | Article |
| Language: | en_US |
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2003
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| Online Access: | http://hdl.handle.net/1721.1/3893 |
| _version_ | 1826188891993931776 |
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| author | Bertsimas, Dimitris J. Thiele, Aurélie |
| author_facet | Bertsimas, Dimitris J. Thiele, Aurélie |
| author_sort | Bertsimas, Dimitris J. |
| collection | MIT |
| description | We propose a general methodology based on robust optimization to address the problem of optimally controlling a supply chain subject to stochastic demand in discrete time. The attractive features of the proposed approach are: (a) It incorporates a wide variety of phenomena, including demands that are not identically distributed over time and capacity on the echelons and links; (b) it uses very little information on the demand distributions; (c) it leads to qualititatively similar optimal policies (basestock policies) as in dynamic programming; (d) it is numerically tractable for large scale supply chain problems even in networks, where dynamic programming methods face serious dimensionality problems; (e) in preliminary computation experiments, it often outperforms dynamic programming based solutions for a wide range of parameters. |
| first_indexed | 2024-09-23T08:06:20Z |
| format | Article |
| id | mit-1721.1/3893 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T08:06:20Z |
| publishDate | 2003 |
| record_format | dspace |
| spelling | mit-1721.1/38932019-04-09T16:41:36Z A Robust Optimization Approach to Supply Chain Management Bertsimas, Dimitris J. Thiele, Aurélie robust optimization approach supply chain management stochastic demand discrete time We propose a general methodology based on robust optimization to address the problem of optimally controlling a supply chain subject to stochastic demand in discrete time. The attractive features of the proposed approach are: (a) It incorporates a wide variety of phenomena, including demands that are not identically distributed over time and capacity on the echelons and links; (b) it uses very little information on the demand distributions; (c) it leads to qualititatively similar optimal policies (basestock policies) as in dynamic programming; (d) it is numerically tractable for large scale supply chain problems even in networks, where dynamic programming methods face serious dimensionality problems; (e) in preliminary computation experiments, it often outperforms dynamic programming based solutions for a wide range of parameters. Singapore-MIT Alliance (SMA) 2003-12-14T23:09:33Z 2003-12-14T23:09:33Z 2004-01 Article http://hdl.handle.net/1721.1/3893 en_US High Performance Computation for Engineered Systems (HPCES); 413796 bytes application/pdf application/pdf |
| spellingShingle | robust optimization approach supply chain management stochastic demand discrete time Bertsimas, Dimitris J. Thiele, Aurélie A Robust Optimization Approach to Supply Chain Management |
| title | A Robust Optimization Approach to Supply Chain Management |
| title_full | A Robust Optimization Approach to Supply Chain Management |
| title_fullStr | A Robust Optimization Approach to Supply Chain Management |
| title_full_unstemmed | A Robust Optimization Approach to Supply Chain Management |
| title_short | A Robust Optimization Approach to Supply Chain Management |
| title_sort | robust optimization approach to supply chain management |
| topic | robust optimization approach supply chain management stochastic demand discrete time |
| url | http://hdl.handle.net/1721.1/3893 |
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