Title: Facility location decisions in supply chain design under uncertainty: a robust optimisation approach

Authors: Hashem Omrani; Fahimeh Ghiasvand Ghiasi

Addresses: Faculty of Industrial Engineering, Urmia University of Technology, Urmia, Iran ' Faculty of Industrial Engineering, Urmia University of Technology, Urmia, Iran

Abstract: This paper presents a robust optimisation model for facility location decisions in supply chain design. Robust optimisation belongs to a prominent domain for dealing with optimisation problems with data uncertainty. In this study, a robust optimisation model for a three echelon supply chain is developed. First, a deterministic mixed integer linear formulation for the supply chain design problem is described. Then, the uncertainties in the coefficients of the objective function, left and right hand side parameters are considered and a robust mixed integer linear model is developed. Finally, the deterministic model and its robust counterpart are compared in a numerical experiment.

Keywords: supply chain management; robust optimisation; facility location.

DOI: 10.1504/IJOR.2017.087279

International Journal of Operational Research, 2017 Vol.30 No.3, pp.391 - 406

Received: 24 May 2014
Accepted: 23 Mar 2015
Published online: 12 Oct 2017 *

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