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A Robust Dynamic Operating Model for a Supply Chain under Uncertain Markets

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3 Author(s)
Jiawang Xu ; Sch. of Bus. Adm., Northeastern Univ., Shenyang ; Xiaoyuan Huang ; Yan, N.

A dynamic operating model is proposed in this paper to deal with a multi-period, multi-product supply chain consisting of a supplier and a producer. The amount of raw materials supply and their prices, ultimate products demand and their prices are uncertain. The uncertainties of prices are described by the uncertain intervals; the supplies and demands are described as a scenario set with certain probability. The model is constructed as a dynamic programming problem and satisfying several conflict objectives, such as the operating coordination of supply chain, making the maximum profit of all participants as much as possible, and robustness of decision to uncertain markets. The result of a numerical example shows that the model we proposed is robust

Published in:

Control, Automation, Robotics and Vision, 2006. ICARCV '06. 9th International Conference on

Date of Conference:

5-8 Dec. 2006