Developing Robust Model in a Three-Level Supply Chain with Uncertain and Random Parameters (Case Study: Thaghdis Porcelain Company)

This paper aims to develop a three-objective robust optimization model in Thaghdis Porcelain supply chain. Objectives weighted using AHP technique so the problem converts to a single-objective model. Then the problem turned to the robust optimization model through Bertsimas and Sim (2004) methodology. Research data were Prances and Flat 30-pieces type in a certain period, three supplier source include demand, quality and supplier capacity revealed as robustness sources. Thaghdis supply chain include three levels with 8 suppliers, 6 raw materials (a supplier for 4 materials, 2 suppliers for 1 material and 3 suppliers for 3 materials), a factory and 13 customers. Variables relationships were linear and uncertain parameters were random. Company set a Make to order (MTO) strategy. The model was solved by LINGO16 software. The results show that the conservatism level increase from 1 to 5, the objective function was worse off, however the quantity of each product increases. So, the uncertainty increases the quantity of each products increase.