We consider a supply chain design problem to provide new ways to buffer the effect of demand uncertainty when designing supply chains. The problem is formulated as a two-stage stochastic programming with fixed recourse. A special sampling procedure based on uniform experiment designs provides superior quality approximate solutions for a simple supply chain structure when demands are correlated.
All Science Journal Classification (ASJC) codes
- Management Information Systems
- Modeling and Simulation
- Economics, Econometrics and Finance(all)
- Strategy and Management
- Management Science and Operations Research
- Applied Mathematics