Bounds of relative regret limit in p-robust supply chain network design

• Autores: Junfeng Tian, Jinfeng Yue
• Localización: Production and Operations Management, ISSN-e 1937-5956, Vol. 23, Nº. 10, 2014, págs. 1811-1831
• Idioma: inglés
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• Resumen

  • This research studies the p-robust supply chain network design with uncertain demand and cost scenarios. The optimal design integrates the supplier selection together with the facility location and capacity problem. We provide a new framework to obtain the relative regret limit, which is critical in the robust supply chain design but is assumed to be a known value in the existing literature. We obtain lower and upper bounds for relative regret limit and obtain a sequence of optimal solutions for series relative regret limits between the upper and lower bounds. An algorithm for p-robust supply chain network design is provided. A series of numerical examples are designed to find the properties of the bottleneck scenarios. A scenario with low probability and a low optimal objective function value for the scenario has a greater chance of being a bottleneck. To focus only on the influence from the relative regret, we also introduce three separate new objective functions in p-robust design. The proposed new theories and approaches provide a sequence of options for decision makers to reduce the marketing risks effectively in supply chain network design.