Authors: Amir Azaron, , Kai Furmans, Mohammad Modarres
Abstract: We develop a multi-objective stochastic programming model for supply chain design under uncertainty using an interactive approach. This is a comprehensive model, which includes both the strategic and tactical levels. The uncertainty regarding demands, supplies, processing and transportation costs is captured by generating discrete scenarios with given probabilities of occurrences. The objective functions involved are the expected total cost (min), the variance of the total costs (min) to get a robust design, and the probability of not meeting a certain budget (min). Then, an interactive multi-objective technique with explicit trade-off information given named surrogate worth trade-off (SWT) method is used to solve the multi-objective model.
Keywords: Supply chain management; Multiple objective programming; Stochastic programming; Risk management