fyrirlestramaraÞon hr 2011 | ru lecture marathon 2011 amir azaron school of science and engineering...
DESCRIPTION
Manufacturer Warehouse Wholesaler Consumer Supply Chain Network SupplierTRANSCRIPT
FYRIRLESTRAMARAÞON HR 2011 | RU LECTURE MARATHON 2011
Amir AzaronSchool of Science and Engineering
Supply Chain Design under Uncertainty
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Supply Chain
• A Supply Chain is a network of suppliers, manufacturing plants, warehouses and distribution channels.
• It is organized to acquire raw materials, convert these raw materials to finished products and distribute these products to customers.
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Manufacturer
Manufacturer
Warehouse
Warehouse
Warehouse
WholesalerConsumer
Consumer
Consumer
Supply Chain Network
Supplier
Supplier
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Supply Chain Design Problem• Decision Variables
- Strategic decisions are dealing with the configuration of the supply chain or locations of facilities
- Tactical decisions are dealing with the amount of products to be produced and flows of materials.
• Constraints- Flows (min on demand nodes, flow conservation on
intermediate nodes, max on supply nodes).• SCD Problem Objective
- Simultaneously make Strategic and Tactical decisions to minimize the total costs.
We should also make decision in an environment where most model parameters such as demands, capacities, etc., are uncertain.
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Min
L
ll
Tll
Tll
Tll
T efzhxqpyc1
[Expected Total Cost]
Min
L
l
L
ll
Tll
Tll
Tlll
Tll
Tll
Tll efzhxqpefzhxqp
1
2
1
[Variance]
Min
L
lllup
1
[Financial Risk]
s.t. Bxl=0 l=1,…,L [Flow Conservation] Dxl+zl dl l=1,…,L [Meeting Demand]
Sxl ls l=1,…,L [Supply Limit] RxlMy+el l=1,…,L [Capacity Constraint] Oyel l=1,…,L [Capacity Expansion Limit] ll
Tll
Tll
Tl
T Vuefzhxqyc l=1,…,L [Rel. to Financial Risk]
PYy }1,0{ , LUu }1,0{ [Binary Variables]
,LKARx LKCRz
, LPRe [Continuous Variables]