A Multi-objective Robust Operating Model for Supply Chain with Uncertain Market Supplies and Demands

A dynamic robust operating model is proposed to deal with multiple incommensurable goals for a multi-product, multi-stage supply chain with uncertain market demands and raw material supplies. The uncertainties are modeled as a number of discrete scenarios with known probabilities. The supply chain operating model is constructed as a multi-objective dynamic programming problem to satisfy several conflict objectives, such as coordination of supply chain, the maximum profit of all participants, and robustness of decision to uncertain product demands and raw material supplies. The result of a numerical example proved effectively that the inclusion of robustness measures as part of objectives can significantly reduce the variability of objective values to uncertain supplies and demands.