Optimization of Supply Chain Network Based on Uncertainty Demand

Abstract

In recent years, the increase of customer demand and their expectations has accelerated the market competition among manufacturers. Therefore, supply chain (SC) has become the most important issue for different enterprises. It is significant for companies to have an optimal supply chain network not only to fulfil customer’s expectation but also to make it efficient. Containing facilities such as production plants, warehouses, assembly centers, disassembly centers, refurbish centers, customer centers and collection centers in the network, supply chain network of modular products are considered with uncertainty in the supply from plants. To minimize overall cost of the network, we propose a mixed integer programming model for the considered network in this paper. The proposed model is validated by solving an example problem using GAMS tool.