Designing a Reliable Supply Chain Network with Random Disruption Consideration
نویسندگان
چکیده
Supply chain design models in the literature typically assume that facilities never fail. However, in the real world cases facilities are always subject to disruptions of various sorts due to natural disasters, strikes, machine breakdowns, power outages, and other factors. This paper presents an integrated supply chain network design model with the consideration of facility disruptions. Specifically, a mathematical model is proposed in order to determine supply chain design decisions such as location, assignment, inventory and shipment decisions. The model maximizes total profit for the whole supply chain, while simultaneously considers costs of location, inventory, transportation and disruption. In order to solve the proposed model, an effective solution approach based on Lagrangian relaxation is presented. Finally, computational results for several instances of the problem are proposed to imply the effectiveness of the developed solution approach.
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