Supply interruption supply chain network model with uncertain demand: an application of chance-constrained programming with fuzzy parameters

Haidong Guo, Shengyu Wang and Yu Zhang

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The downstream supply interruption of manufacturers is a disaster for the company when the demand is uncertain in the market; a fuzzy programming with fuzzy parameters model of supply interruption supply chain network is established by simulating market operation rules. The aim of the current study is to build a fuzzy chance-constrained programming method which is developed for supporting the uncertainty of demand. This method ensured that the fuzzy constraints can be satisfied at specified confidence levels, leading to cost-effective solutions under acceptable risk magnitudes. Finally, through the case of the electronic product manufacturing enterprise, the feasibility and effectiveness of the proposed model are verified by adopting a sensitivity analysis of capacity loss level and minimizing objective function. Numerical simulation shows that selecting two manufacturing centers can effectively reduce the supply chain cost and maintain business continuity.

JEL-codes: J01 J1 R14 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2021-02-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Discrete Dynamics in Nature and Society, 8, February, 2021, 2021. ISSN: 1026-0226

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