Collaborative production planning of supply chain under price and demand uncertainty
This research is motivated by an automobile manufacturing supply chain network. It involves a multi-echelon production system with material supply, component fabrication, manufacturing, and final product distribution activities. We address the production planning issue by considering bill of materials and the trade-offs between inventories, production costs and customer service level. Due to its complexity, an integrated solution framework which combines scatter evolutionary algorithm, fuzzy programming and stochastic chance-constrained programming are combined to jointly take up the issue. We conduct a computational study to evaluate the model. Numerical results using the proposed algorithm confirm the advantage of the integrated planning approach. Compared with other solution methodologies, the supply chain profits from the proposed approach consistently outperform, in some cases up to 13% better. The impacts of uncertainty in demand, material price, and other parameters on the performance of the supply chain are studied through sensitivity analysis. We found the proposed model is effective in developing robust production plans under various market conditions.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- A. Charnes & W. W. Cooper, 1959. "Chance-Constrained Programming," Management Science, INFORMS, vol. 6(1), pages 73-79, October.
- Vernon Ning Hsu & Chung Yee Lee & Kut C. So, 2006. "Optimal Component Stocking Policy for Assemble-to-Order Systems with Lead-Time-Dependent Component and Product Pricing," Management Science, INFORMS, vol. 52(3), pages 337-351, March.
- Weng, Z. Kevin & McClurg, Tim, 2003. "Coordinated ordering decisions for short life cycle products with uncertainty in delivery time and demand," European Journal of Operational Research, Elsevier, vol. 151(1), pages 12-24, November.
- Al-Othman, Wafa B.E. & Lababidi, Haitham M.S. & Alatiqi, Imad M. & Al-Shayji, Khawla, 2008. "Supply chain optimization of petroleum organization under uncertainty in market demands and prices," European Journal of Operational Research, Elsevier, vol. 189(3), pages 822-840, September.
- 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.
- Mula, Josefa & Peidro, David & Díaz-Madroñero, Manuel & Vicens, Eduardo, 2010. "Mathematical programming models for supply chain production and transport planning," European Journal of Operational Research, Elsevier, vol. 204(3), pages 377-390, August.
- Giannoccaro, Ilaria & Pontrandolfo, Pierpaolo & Scozzi, Barbara, 2003. "A fuzzy echelon approach for inventory management in supply chains," European Journal of Operational Research, Elsevier, vol. 149(1), pages 185-196, August.
- Saibal Ray & Shanling Li & Yuyue Song, 2005. "Tailored Supply Chain Decision Making Under Price-Sensitive Stochastic Demand and Delivery Uncertainty," Management Science, INFORMS, vol. 51(12), pages 1873-1891, December.
- Petrovic, Dobrila & Roy, Rajat & Petrovic, Radivoj, 1999. "Supply chain modelling using fuzzy sets," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 443-453, March.
- Leung, Stephen C.H. & Tsang, Sally O.S. & Ng, W.L. & Wu, Yue, 2007. "A robust optimization model for multi-site production planning problem in an uncertain environment," European Journal of Operational Research, Elsevier, vol. 181(1), pages 224-238, August.
- Ramesh Bollapragada & Uday S. Rao & Jun Zhang, 2004. "Managing Inventory and Supply Performance in Assembly Systems with Random Supply Capacity and Demand," Management Science, INFORMS, vol. 50(12), pages 1729-1743, December.
- Abdelaziz, Fouad Ben & Aouni, Belaid & Fayedh, Rimeh El, 2007. "Multi-objective stochastic programming for portfolio selection," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1811-1823, March.
- June Dong & Ding Zhang & Hong Yan & Anna Nagurney, 2005. "Multitiered Supply Chain Networks: Multicriteria Decision—Making Under Uncertainty," Annals of Operations Research, Springer, vol. 135(1), pages 155-178, March.
- Naso, David & Surico, Michele & Turchiano, Biagio & Kaymak, Uzay, 2007. "Genetic algorithms for supply-chain scheduling: A case study in the distribution of ready-mixed concrete," European Journal of Operational Research, Elsevier, vol. 177(3), pages 2069-2099, March.
- AkartunalI, Kerem & Miller, Andrew J., 2009. "A heuristic approach for big bucket multi-level production planning problems," European Journal of Operational Research, Elsevier, vol. 193(2), pages 396-411, March.
- Burak Kazaz, 2004. "Production Planning Under Yield and Demand Uncertainty with Yield-Dependent Cost and Price," Manufacturing & Service Operations Management, INFORMS, vol. 6(3), pages 209-224, October.
When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:215:y:2011:i:3:p:590-603. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.