IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v288y2020i1d10.1007_s10479-020-03532-9.html
   My bibliography  Save this article

A data-driven approach for supply chain network design under uncertainty with consideration of social concerns

Author

Listed:
  • Mohammad Fattahi

    (Shahrood University of Technology)

Abstract

Although supply chain network design under uncertainty has been studied by many researchers, most stochastic programming approaches in this area assume uncertain parameters follow certain distribution functions. However, in practice, the true distributions may be ambiguous and some historical data are available. This study proposes a data-driven two-stage stochastic programming model to obtain robust decisions among all possible distributions in a defined ambiguity set based on the moments of available data. In accordance with the proposed stochastic program, a solution algorithm based on Benders’ decomposition is developed. Further, the social concerns corresponding to the supply chain network are derived and quantified by the social life cycle assessment methodology. The proposed model is applied for designing a recovery network in which various technologies use generated municipal solid wastes for the power generation. Computational results on a real-life case study demonstrate the applicability of the proposed data-driven two-stage stochastic model as well as the impact of considering social concerns on the design decisions.

Suggested Citation

  • Mohammad Fattahi, 2020. "A data-driven approach for supply chain network design under uncertainty with consideration of social concerns," Annals of Operations Research, Springer, vol. 288(1), pages 265-284, May.
  • Handle: RePEc:spr:annopr:v:288:y:2020:i:1:d:10.1007_s10479-020-03532-9
    DOI: 10.1007/s10479-020-03532-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-020-03532-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10479-020-03532-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schütz, Peter & Tomasgard, Asgeir & Ahmed, Shabbir, 2009. "Supply chain design under uncertainty using sample average approximation and dual decomposition," European Journal of Operational Research, Elsevier, vol. 199(2), pages 409-419, December.
    2. Shiva Zokaee & Armin Jabbarzadeh & Behnam Fahimnia & Seyed Jafar Sadjadi, 2017. "Robust supply chain network design: an optimization model with real world application," Annals of Operations Research, Springer, vol. 257(1), pages 15-44, October.
    3. Tang, Christopher S., 2006. "Perspectives in supply chain risk management," International Journal of Production Economics, Elsevier, vol. 103(2), pages 451-488, October.
    4. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    5. Nickel, Stefan & Saldanha-da-Gama, Francisco & Ziegler, Hans-Peter, 2012. "A multi-stage stochastic supply network design problem with financial decisions and risk management," Omega, Elsevier, vol. 40(5), pages 511-524.
    6. Eskandarpour, Majid & Dejax, Pierre & Miemczyk, Joe & Péton, Olivier, 2015. "Sustainable supply chain network design: An optimization-oriented review," Omega, Elsevier, vol. 54(C), pages 11-32.
    7. Matthias Ehrgott, 2006. "A discussion of scalarization techniques for multiple objective integer programming," Annals of Operations Research, Springer, vol. 147(1), pages 343-360, October.
    8. Goh, Mark & Lim, Joseph Y.S. & Meng, Fanwen, 2007. "A stochastic model for risk management in global supply chain networks," European Journal of Operational Research, Elsevier, vol. 182(1), pages 164-173, October.
    9. Erick Delage & Yinyu Ye, 2010. "Distributionally Robust Optimization Under Moment Uncertainty with Application to Data-Driven Problems," Operations Research, INFORMS, vol. 58(3), pages 595-612, June.
    10. Keyvanshokooh, Esmaeil & Ryan, Sarah M. & Kabir, Elnaz, 2016. "Hybrid robust and stochastic optimization for closed-loop supply chain network design using accelerated Benders decomposition," European Journal of Operational Research, Elsevier, vol. 249(1), pages 76-92.
    11. Hombach, Laura Elisabeth & Büsing, Christina & Walther, Grit, 2018. "Robust and sustainable supply chains under market uncertainties and different risk attitudes – A case study of the German biodiesel market," European Journal of Operational Research, Elsevier, vol. 269(1), pages 302-312.
    12. Santoso, Tjendera & Ahmed, Shabbir & Goetschalckx, Marc & Shapiro, Alexander, 2005. "A stochastic programming approach for supply chain network design under uncertainty," European Journal of Operational Research, Elsevier, vol. 167(1), pages 96-115, November.
    13. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    14. Huang, Edward & Goetschalckx, Marc, 2014. "Strategic robust supply chain design based on the Pareto-optimal tradeoff between efficiency and risk," European Journal of Operational Research, Elsevier, vol. 237(2), pages 508-518.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Farheen Naz & Anil Kumar & Abhijit Majumdar & Rohit Agrawal, 2022. "Is artificial intelligence an enabler of supply chain resiliency post COVID-19? An exploratory state-of-the-art review for future research," Operations Management Research, Springer, vol. 15(1), pages 378-398, June.
    2. Arthur Mahéo & Diego Gabriel Rossit & Philip Kilby, 2023. "Solving the integrated bin allocation and collection routing problem for municipal solid waste: a Benders decomposition approach," Annals of Operations Research, Springer, vol. 322(1), pages 441-465, March.
    3. Mingqiang Yin & Min Huang & Xiaohu Qian & Dazhi Wang & Xingwei Wang & Loo Hay Lee, 2023. "Fourth-party logistics network design with service time constraint under stochastic demand," Journal of Intelligent Manufacturing, Springer, vol. 34(3), pages 1203-1227, March.
    4. Rebolledo-Leiva, Ricardo & Moreira, María Teresa & González-García, Sara, 2023. "Progress of social assessment in the framework of bioeconomy under a life cycle perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 175(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fattahi, Mohammad & Govindan, Kannan & Keyvanshokooh, Esmaeil, 2017. "Responsive and resilient supply chain network design under operational and disruption risks with delivery lead-time sensitive customers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 176-200.
    2. Fattahi, Mohammad & Mosadegh, Hadi & Hasani, Aliakbar, 2021. "Sustainable planning in mining supply chains with renewable energy integration: A real-life case study," Resources Policy, Elsevier, vol. 74(C).
    3. Govindan, Kannan & Fattahi, Mohammad, 2017. "Investigating risk and robustness measures for supply chain network design under demand uncertainty: A case study of glass supply chain," International Journal of Production Economics, Elsevier, vol. 183(PC), pages 680-699.
    4. Roba W. Salem & Mohamed Haouari, 2017. "A simulation-optimisation approach for supply chain network design under supply and demand uncertainties," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 1845-1861, April.
    5. Farahani, Reza Zanjirani & Rezapour, Shabnam & Drezner, Tammy & Fallah, Samira, 2014. "Competitive supply chain network design: An overview of classifications, models, solution techniques and applications," Omega, Elsevier, vol. 45(C), pages 92-118.
    6. Sahling, Florian & Kayser, Ariane, 2016. "Strategic supply network planning with vendor selection under consideration of risk and demand uncertainty," Omega, Elsevier, vol. 59(PB), pages 201-214.
    7. Brandenburg, Marcus, 2017. "A hybrid approach to configure eco-efficient supply chains under consideration of performance and risk aspects," Omega, Elsevier, vol. 70(C), pages 58-76.
    8. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    9. Blossey, Gregor & Hahn, Gerd J. & Koberstein, Achim, 2022. "Planning pharmaceutical manufacturing networks in the light of uncertain production approval times," International Journal of Production Economics, Elsevier, vol. 244(C).
    10. Snoeck, André & Udenio, Maximiliano & Fransoo, Jan C., 2019. "A stochastic program to evaluate disruption mitigation investments in the supply chain," European Journal of Operational Research, Elsevier, vol. 274(2), pages 516-530.
    11. Heckmann, Iris & Comes, Tina & Nickel, Stefan, 2015. "A critical review on supply chain risk – Definition, measure and modeling," Omega, Elsevier, vol. 52(C), pages 119-132.
    12. Kanokporn Kungwalsong & Abraham Mendoza & Vasanth Kamath & Subramanian Pazhani & Jose Antonio Marmolejo-Saucedo, 2022. "An application of interactive fuzzy optimization model for redesigning supply chain for resilience," Annals of Operations Research, Springer, vol. 315(2), pages 1803-1839, August.
    13. Fattahi, Mohammad & Govindan, Kannan, 2018. "A multi-stage stochastic program for the sustainable design of biofuel supply chain networks under biomass supply uncertainty and disruption risk: A real-life case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 534-567.
    14. Nickel, Stefan & Saldanha-da-Gama, Francisco & Ziegler, Hans-Peter, 2012. "A multi-stage stochastic supply network design problem with financial decisions and risk management," Omega, Elsevier, vol. 40(5), pages 511-524.
    15. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov & Marina Ivanova, 2017. "Literature review on disruption recovery in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 55(20), pages 6158-6174, October.
    16. Klibi, Walid & Martel, Alain & Guitouni, Adel, 2016. "The impact of operations anticipations on the quality of stochastic location-allocation models," Omega, Elsevier, vol. 62(C), pages 19-33.
    17. Baghalian, Atefeh & Rezapour, Shabnam & Farahani, Reza Zanjirani, 2013. "Robust supply chain network design with service level against disruptions and demand uncertainties: A real-life case," European Journal of Operational Research, Elsevier, vol. 227(1), pages 199-215.
    18. M. Fattahi & M. Mahootchi & S. M. Moattar Husseini, 2016. "Integrated strategic and tactical supply chain planning with price-sensitive demands," Annals of Operations Research, Springer, vol. 242(2), pages 423-456, July.
    19. Longinidis, Pantelis & Georgiadis, Michael C., 2014. "Integration of sale and leaseback in the optimal design of supply chain networks," Omega, Elsevier, vol. 47(C), pages 73-89.
    20. Gong, Hailei & Zhang, Zhi-Hai, 2022. "Benders decomposition for the distributionally robust optimization of pricing and reverse logistics network design in remanufacturing systems," European Journal of Operational Research, Elsevier, vol. 297(2), pages 496-510.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:288:y:2020:i:1:d:10.1007_s10479-020-03532-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.