Resilient Supply Network Design of a Two Stage Supply Chain and Risk Analysis Using Stochastic Programming (A Case Study of GPPS Supply Chain)

Document Type : Research Paper

Authors

1 Prof. of Industrial Management, Tehran University, Tehran, Iran

2 Assistant Prof. of Industrial Management, Tehran University, Tehran, Iran

3 Prof., Faculty of Industrial Engineering, Sharif University, Tehran, Iran

4 Ph.D. Candidate of Industrial Management, University of Tehran, Tehran, Iran

Abstract

This paper proposes a multi-period resilient supply network model for a two stage supply chain in which one of the main raw materials should be bought from different suppliers and various products should be produced for customers in several manufacturer production sites. We used two-stage stochastic programming provided that the customers have uncertain demands and the suppliers propose uncertain prices from time to time. In contrast with previous researches, we considered disruption risks of supply, mitigation strategies and contingency plans against risks to improve the resilience of our supply network. Also, to increase the authenticity of our model, we consider the production planning in each production site simultaneously. The supply network design was analyzed from a risk-neutral and a risk-averse decision maker point of view. To illustrate the applicability of our proposed approach, computational results of using this model in a real-life case was presented. Finally, to investigate the influence of cost parameter changes on the results of the model, we performed a sensitive analysis.

Keywords

References

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Industrial Management Journal
Volume 9, Issue 1
2017
Pages 189-216

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