A Multi-objective Multi-site Supply Chain Planning Problem under Risk and Uncertainty
In this paper, we propose a multi-objective two-stage stochastic programming model for a multi-site supply chain planning problem under demand uncertainty. Decisions such as the amount of products to be produced, the inventory level, the quantity of lost demand and the amounts of product transported between plants and customer are considered. In order to develop a robust supply chain planning solution, a risk measure is incorporated into the stochastic programming model. The proposed multi-objective model aims simultaneously to minimize the expected total cost, to minimize the worst-case cost and to maximize the customer demand satisfaction level. A numerical example is illustrated in order to show the effectiveness of the proposed model.
Keywordssupply chain planning multi-objective risk management stochastic programming
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