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1 Department of Mechanical and Manufacturing Engineering, The Faculty of Engineering and Science, Aalborg University, VBN 2 The Faculty of Engineering and Science, Aalborg University, VBN 3 Department of Manufacturing and Industrial Engineering, Faculty of Mechanical Engineering 4 Århus University, Department of Economics and Business
Supply chain planning as one of the most important processes within the supply chain management concept, has a great impact on firms' success or failure. This paper considers a supply chain planning problem of an agile manufacturing company operating in a build-to-order environment under various kinds of uncertainty. An integrated optimization approach of procurement, production and distribution costs associated with the supply chain members has been taken into account. A robust optimization scenario-based approach is used to absorb the influence of uncertain parameters and variables. The formulation is a robust optimization model with the objective of minimizing the expected total supply chain cost while maintaining customer service level. The developed multi-product, multi-period, multi-echelon robust mixed-integer linear programming model is then solved using the CPLEX optimization studio and guidance related to future areas of research is given. © 2013 Springer Science+Business Media New York.
Annals of Operations Research, 2015, p. 1-36
Agile manufacturing; Build-to-order; Mixed-integer linear programming; Robust optimization; Supply chain planning
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