A DECOMPOSITION APPROACH FOR THE TWO-STAGE STOCHASTIC SUPPLY NETWORK PLANNING IN LIGHT OF THE ROLLING HORIZON PRACTICE

Industries conduct the Sales and Operations Planning (S&OP) to balance demand supply aligned business targets. This study aims at proposing a model an algorithm for tactical chain planning admitting uncertainty reflecting peculiar S&OP aspect of rolling horizon planning. Therefore, two-stage stochastic programming is developed solved via multi-cut Benders decomposition algorithm. The solution method are evaluated by numerical experiments case study. Results show that optimal profit not proportional demand, in fact, increase can even decrease due capacity constraints along chain. Such findings reinforce profitability service level increased with synergy sales team production, distribution procurement on establishing which should be satisfied - or each period. compared deterministic approaches.