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Facility Location and Supply Chain Risk Analytics

In: Uncertainty in Facility Location Problems

Author

Listed:
  • Iris Heckmann

    (Innovative Technologies Lab)

  • Stefan Nickel

    (Karlsruhe Institute of Technology (KIT))

  • Francisco Saldanha-da-Gama

    (Faculdade de Ciências, Universidade de Lisboa)

Abstract

In this chapter, location analysis is put at the core of what is coined as supply chain risk analytics. This is accomplished by devising a hierarchy for the core elements underlying a new definition introduced for supply chain risk. The ultimate purpose of this analysis is to obtain risk-aware decisions for supply network design that adequately overcome the information gap. The above elements and concepts are operationalized through a capacitated facility location problem with an objective that has firm- and customer-oriented features and that includes demand uncertainty. This leads to a risk-aware optimization model, which is introduced for supply chain network design problems fulfilling gaps identified in contemporary research. Additionally, the value of considering risk-aware solutions is discussed in the context of supply chain management. Above all, this chapter closes a gap existing in the literature, namely, a missing clear objective and quantifiable definition of risk in supply chain management. Both researchers and practitioners can benefit from the contents of this chapter.

Suggested Citation

  • Iris Heckmann & Stefan Nickel & Francisco Saldanha-da-Gama, 2023. "Facility Location and Supply Chain Risk Analytics," International Series in Operations Research & Management Science, in: H. A. Eiselt & Vladimir Marianov (ed.), Uncertainty in Facility Location Problems, pages 155-181, Springer.
    • Handle: RePEc:spr:isochp:978-3-031-32338-6_7
    DOI: 10.1007/978-3-031-32338-6_7
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