Bounds of Relative Regret Limit in p-Robust Supply Chain Network Design

• 成果类型: Article
• 署名作者: Tian, Junfeng; Yue, Jinfeng
• 署名单位: Southwestern University of Finance & Economics - China; Shanghai University of Finance & Economics; Middle Tennessee State University
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.12187
• 发表日期: 2014
• 页码: 1811-1831
• 关键词: supply chain design; robust optimization; Stochastic Programming; regret

摘要

This research studies the p-robust supply chain network design with uncertain demand and cost scenarios. The optimal design integrates the supplier selection together with the facility location and capacity problem. We provide a new framework to obtain the relative regret limit, which is critical in the robust supply chain design but is assumed to be a known value in the existing literature. We obtain lower and upper bounds for relative regret limit and obtain a sequence of optimal solutions for series relative regret limits between the upper and lower bounds. An algorithm for p-robust supply chain network design is provided. A series of numerical examples are designed to find the properties of the bottleneck scenarios. A scenario with low probability and a low optimal objective function value for the scenario has a greater chance of being a bottleneck. To focus only on the influence from the relative regret, we also introduce three separate new objective functions in p-robust design. The proposed new theories and approaches provide a sequence of options for decision makers to reduce the marketing risks effectively in supply chain network design.