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Robust Operation Strategy Design for an Electronic Market Enabled Supply Chain with Uncertain Variable Costs

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4 Author(s)
Jiawang Xu ; Shenyang Inst. of Autom., Chinese Acad. of Sci., Shenyang, China ; Yunlong Zhu ; Bo Jiang ; Zuopeng Wang

An operation model is proposed in this paper for an electronic market enabled supply chain with uncertain variable costs. The supply chain consists of multi-supplier and multi-customer, suppliers can provide many kinds of product to different customers directly or through electronic market. Uncertain variable costs are described as symmetrical and limited intervals. A robust operation model for this supply chain is constructed by using the robust optimization method based on interval analysis. The operation model is a multi-objective programming problem satisfying several conflict objectives, such as meeting the demands of all customers, minimizing the total system cost, the availabilities of supplierspsila capacities not below a certain level, and robustness of decision to uncertain variable costs. The result of a numerical example proved that the solution of the model is the most conservative. However, it can ensure the robustness of the operation of the supply chain effectively.

Published in:

Management of e-Commerce and e-Government, 2009. ICMECG '09. International Conference on

Date of Conference:

16-19 Sept. 2009