Advances in Industrial Engineering

Advances in Industrial Engineering

Scenario-Based Model for Multi-Product Multi-Level Supply Chain Management with Stochastic Demand and Waiting Time

Document Type : Research Paper

Authors
Mohammad Bagher Fakhrzad
Zahra Sadat Hosseini
Javad Hassanpour Roudbaraki
Department of Industrial Engineering, Yazd University, Yazd, Iran
10.22059/jieng.2018.220418.1256
Abstract
In this paper, a model is presented for managing multi-product multi-level supply chain by using predictive control of scenario-based model, which can handle supply chain with stochastic programming of the uncertainty that is caused by demand and random waiting time. In addition, it guarantees a certain level of customer service in the form of horizon at 95% level of confidence. Probabilistic waiting time may lead to lash effect throughout the entire chain, and causes shortages at different levels. Therefore, cost of facing shortages is considered in the model. After modeling, the problem is solved in probabilistic state, and to solve larger problems imperialist competitive algorithm is used. Results indicate that SCMPC is computationally very efficient, and offers significant advantage over the robust and stochastic optimization.
Keywords
Multi Period
Multiproduct
Predictive Control
Scenario-Based Optimization
Stochastic Programming
Subjects
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Advances in Industrial Engineering
Volume 52, Issue 2
Summer 2018
Pages 249-261