 Robust bi-level optimization for an opportunistic supply chain network design problem in an uncertain and risky environmentHêris Golpîra () Operations Research and Decisions, 2017, vol. 27, issue 1, 21-41 Abstract: This paper introduces the problem of designing a single-product supply chain network in an agile manufacturing setting under a vendor managed inventory (VMI) strategy to seize a new market opportunity. The problem addresses the level of risk aversion of the retailer when dealing with the uncertainty of market related information through a conditional value at risk (CVaR) approach. This approach leads to a bilevel programming problem. The Karush–Kuhn–Tucker (KKT) conditions are employed to transform the model into a single-level, mixed-integer linear programming problem by considering some relaxations. Since realizations of imprecisely known parameters are the only information available, a data-driven approach is employed as a suitable, more practical, methodology of avoiding distributional assumptions. Finally, the effectiveness of the proposed model is demonstrated through a numerical example. Keywords: supply chain management; production-distribution planning; conditional value at risk; bilevel programming; robust optimization; KKT conditions (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wut:journl:v:1:y:2017:p:21-41:id:1267 DOI: 10.5277/ord170102 Access Statistics for this article More articles in Operations Research and Decisions from Wroclaw University of Science and Technology, Faculty of Management Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.