Incorporating demand uncertainty and forecast error in supply chain planning models

Incorporating demand uncertainty and forecast error in supply chain planning models

This paper develops a framework for examining the effect of demand uncertainty and forecast error on unit costs and customer service levels in the supply chain, including Material Requirements Planning (MRP) type manufacturing systems. The aim is to overcome the methodological limitations and confusion that has arisen in much earlier research. To illustrate the issues, the problem of estimating...

Managing demand uncertainty in supply chain planning

In this work, we provide an overview of our previously published works on incorporating demand uncertainty in midterm planning of multisite supply chains. A stochastic programming based approach is described to model the planning process as it reacts to demand realizations unfolding over time. In the proposed bilevel-framework, the manufacturing decisions are modeled as ‘here-and-now’ decisions...

Supply chain planning models with general backorder penalties, supply and demand uncertainty, and quantity discounts

A Stochastic Programming Approach for a Multi-Site Supply Chain Planning in Textile and Apparel Industry under Demand Uncertainty

In this study, a new stochastic model is proposed to deal with a multi-product, multi-period, multi-stage, multi-site production and transportation supply chain planning problem under demand uncertainty. A two-stage stochastic linear programming approach is used to maximize the expected profit. Decisions such as the production amount, the inventory level of finished and semi-finished product, t...

Agent-based demand forecast in multi-echelon supply chain

Supply chain management (SCM) is an emerging field that has commanded attention and support from the industrial community. Demand forecast taking inventory into consideration is an important issue in SCM. There are many diverse inventory systems, in theory or practice, which are operated by entities (companies) in a supply chain. In order to increase supply chain effectiveness, minimize total c...