A multi-objective robust operation model for electronic market enabled supply Chain with uncertain demands

Abstract

A multi-objective robust operation model is proposed in this paper for an electronic market enabled supply chain consisting of multi-supplier and multi-customer with uncertain demands. Suppliers in this supply chain provide many kinds of products to different customers directly or through electronic market. Uncertain demands are described as a scenario set with certain probability; the supply chain operation model is constructed by using the robust optimization method based on scenario analyses. The operation model we proposed is a multi-objective programming problem satisfying several conflict objectives, such as meeting the demands of all customers, minimizing the system cost, the availabilities of suppliers’ capacities not below a certain level, and robustness of decision to uncertain demands. The results of numerical examples proved that the solution of the model is most conservative; however, it can ensure the robustness of the operation of the supply chain effectively.

Keywords

Operation management / robust optimization / objective programming / electronic market

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