Integrated supply chain planning under uncertainty using an improved stochastic approach
This paper proposes an integrated model and a modified solution method for solving supply chain network design problems under uncertainty. The stochastic supply chain network design model is provided as a two-stage stochastic program where the two stages in the decision-making process correspond to...
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| Format: | Article |
| Language: | English |
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Elsevier
2011
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| Online Access: | http://psasir.upm.edu.my/id/eprint/40272/1/Integrated%20supply%20chain%20planning%20under%20uncertainty%20using%20an%20improved%20stochastic%20approach.pdf |
| _version_ | 1796973707071062016 |
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| author | Mohammadi Bidhandi, Hadi Mohd Yusuff, Rosnah |
| author_facet | Mohammadi Bidhandi, Hadi Mohd Yusuff, Rosnah |
| author_sort | Mohammadi Bidhandi, Hadi |
| collection | UPM |
| description | This paper proposes an integrated model and a modified solution method for solving supply chain network design problems under uncertainty. The stochastic supply chain network design model is provided as a two-stage stochastic program where the two stages in the decision-making process correspond to the strategic and tactical decisions. The uncertainties are mostly found in the tactical stage because most tactical parameters are not fully known when the strategic decisions have to be made. The main uncertain parameters are the operational costs, the customer demand and capacity of the facilities. In the improved solution method, the sample average approximation technique is integrated with the accelerated Benders’ decomposition approach to improvement of the mixed integer linear programming solution phase. The surrogate constraints method will be utilized to acceleration of the decomposition algorithm. A computational study on randomly generated data sets is presented to highlight the efficiency of the proposed solution method. The computational results show that the modified sample average approximation method effectively expedites the computational procedure in comparison with the original approach. |
| first_indexed | 2024-03-06T08:46:35Z |
| format | Article |
| id | upm.eprints-40272 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T08:46:35Z |
| publishDate | 2011 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | upm.eprints-402722015-09-15T06:25:38Z http://psasir.upm.edu.my/id/eprint/40272/ Integrated supply chain planning under uncertainty using an improved stochastic approach Mohammadi Bidhandi, Hadi Mohd Yusuff, Rosnah This paper proposes an integrated model and a modified solution method for solving supply chain network design problems under uncertainty. The stochastic supply chain network design model is provided as a two-stage stochastic program where the two stages in the decision-making process correspond to the strategic and tactical decisions. The uncertainties are mostly found in the tactical stage because most tactical parameters are not fully known when the strategic decisions have to be made. The main uncertain parameters are the operational costs, the customer demand and capacity of the facilities. In the improved solution method, the sample average approximation technique is integrated with the accelerated Benders’ decomposition approach to improvement of the mixed integer linear programming solution phase. The surrogate constraints method will be utilized to acceleration of the decomposition algorithm. A computational study on randomly generated data sets is presented to highlight the efficiency of the proposed solution method. The computational results show that the modified sample average approximation method effectively expedites the computational procedure in comparison with the original approach. Elsevier 2011-06 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/40272/1/Integrated%20supply%20chain%20planning%20under%20uncertainty%20using%20an%20improved%20stochastic%20approach.pdf Mohammadi Bidhandi, Hadi and Mohd Yusuff, Rosnah (2011) Integrated supply chain planning under uncertainty using an improved stochastic approach. Applied Mathematical Modelling, 35 (6). pp. 2618-2630. ISSN 0307-904X; ESSN: 1872-8480 http://www.sciencedirect.com/science/article/pii/S0307904X1000452X 10.1016/j.apm.2010.11.042 |
| spellingShingle | Mohammadi Bidhandi, Hadi Mohd Yusuff, Rosnah Integrated supply chain planning under uncertainty using an improved stochastic approach |
| title | Integrated supply chain planning under uncertainty using an improved stochastic approach |
| title_full | Integrated supply chain planning under uncertainty using an improved stochastic approach |
| title_fullStr | Integrated supply chain planning under uncertainty using an improved stochastic approach |
| title_full_unstemmed | Integrated supply chain planning under uncertainty using an improved stochastic approach |
| title_short | Integrated supply chain planning under uncertainty using an improved stochastic approach |
| title_sort | integrated supply chain planning under uncertainty using an improved stochastic approach |
| url | http://psasir.upm.edu.my/id/eprint/40272/1/Integrated%20supply%20chain%20planning%20under%20uncertainty%20using%20an%20improved%20stochastic%20approach.pdf |
| work_keys_str_mv | AT mohammadibidhandihadi integratedsupplychainplanningunderuncertaintyusinganimprovedstochasticapproach AT mohdyusuffrosnah integratedsupplychainplanningunderuncertaintyusinganimprovedstochasticapproach |