A mathematical modeling approach for supply chain management under disruption and operational uncertainty
Date
2023-03-21
Journal Title
Journal ISSN
Volume Title
Publisher
AIChE Journal
Abstract
In this work, we proposed a two-stage stochastic programming model for a four-echelon supply chain problem considering possible disruptions at the nodes (supplier and facilities) as well as the connecting transportation modes and operational uncertainties in form of uncertain demands. The first stage decisions are supplier choice, capacity levels for manufacturing sites and warehouses, inventory levels, transportation modes selection, and shipment decisions for the certain periods, and the second stage anticipates the cost of meeting future demands subject to the first stage decision. Comparing the solution obtained for the two-stage stochastic model with a multi-period deterministic model shows that the stochastic model makes a better first stage decision to hedge against the future demand. This study demonstrates the managerial viability of the proposed model in decision making for supply chain network in which both disruption and operational uncertainties are accounted for.
Description
This is the peer reviewed version of the following article: Badejo, O, Ierapetritou, M. A mathematical modeling approach for supply chain management under disruption and operational uncertainty. AIChE J. 2023; 69( 4):e18037. doi:10.1002/aic.18037, which has been published in final form at https://doi.org/10.1002/aic.18037. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited. This article will be embargoed until 3/21/2024.
Keywords
mathematical modeling, optimization, supply chain, uncertainty
Citation
Badejo, O, Ierapetritou, M. A mathematical modeling approach for supply chain management under disruption and operational uncertainty. AIChE J. 2023; 69( 4):e18037. doi:10.1002/aic.18037