A mathematical modeling approach for supply chain management under disruption and operational uncertainty

Abstract

In this work, we proposed a two-stage stochastic programming model for a fourechelon supply chain problem considering possible disruptions at the nodes (supplier and facilities) as well as the connecting transportation modes and operational uncertainties in form of uncertain demands. The first stage decisions are supplier choice, capacity levels for manufacturing sites and warehouses, inventory levels, transportation modes selection, and shipment decisions for the certain periods, and the second stage anticipates the cost of meeting future demands subject to the first stage decision. Comparing the solution obtained for the two-stage stochastic model with a multi-period deterministic model shows that the stochastic model makes a better first stage decision to hedge against the future demand. This study demonstrates the managerial viability of the proposed model in decision making for supply chain network in which both disruption and operational uncertainties are accounted for.

Optimization methods for plastics management supply chain design

“…Badejo et al introduced a multiperiod, multi-echelon plastic waste management SC model that balanced economic and environmental considerations. 27 This model accounted for plastic waste assuming that preprocessing occurs at the same location as the end-of-life treatment, thereby not explicitly considering MRFs. Ma et al developed a framework for optimizing plastic recycling infrastructure using a case study in the upper Midwest region of the United States.…”

“…Badejo et al introduced a multiperiod, multi‐echelon plastic waste management SC model that balanced economic and environmental considerations 27 . This model accounted for plastic waste assuming that preprocessing occurs at the same location as the end‐of‐life treatment, thereby not explicitly considering MRFs.…”