Bi-Objective Integrated Supply Chain Network Design Under Supply and Demand Uncertainties

Open Access
Wu, Boyi
Graduate Program:
Industrial Engineering
Master of Science
Document Type:
Master Thesis
Date of Defense:
July 09, 2016
Committee Members:
  • M Jeya Chandra, Thesis Advisor
  • M Jeya Chandra, Committee Member
  • Janis P Terpenny, Committee Member
  • uncertainty
  • stochastic demand
  • supplier disruption
  • Supply chain network design
  • multiple objectives
  • scenario analysis
A supply chain has a network structure and its design involves production-distribution decisions on the location of production, distribution facilities, capacities and transportation quantities. A multi-echelon supply chain involving multiple suppliers and multiple retailers for multiple products among multiple periods is considered in this thesis, which is required to be modeled as a multi-objective problem coping with uncertainties during the process. The uncertainties considered in this thesis include demand uncertainties and suppliers’ disruptions. The end retailer’s demand is assumed to be uncertain following a certain distribution. Supplier’s disruptions are represented by a set of discrete scenarios with given probabilities of occurrence of shrink in storage capacity, which can cause insufficient supplies from suppliers. Hence, the model in this thesis is different from traditional supply chain network models under a deterministic case or the models with uncertainties in demand only. In order to study the effects of the various uncertainties involved in the chain on the optimal decisions, multiple methods are tested using a multi-objective mixed-integer nonlinear model. After comparison of computational performance, the min-max method is applied to obtain detailed mathematical solution. Numerical examples are conducted to illustrate the developed model with scenario analysis and sensitivity analysis is also conducted.