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Optimizing robust routing and production planning in stochastic supply chains: Addressing uncertainty of timing and demand for enhanced resilience and efficiency Kelle Snyder Han; Kouvelis Geovany Ortizan
International Journal of Enterprise Modelling Vol. 16 No. 2 (2022): May: Enterprise Modelling
Publisher : International Enterprise Integration Association

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (441.417 KB) | DOI: 10.35335/emod.v16i2.62

Abstract

Unpredictable timing and demand changes can greatly impair supply chain performance and resilience. Optimizing robust routing and production planning in stochastic supply chains improves efficiency and adaptability. Addressing timing and demand uncertainty improves resilience and efficiency. Supply chain management research emphasizes stochastic factors and resilient optimization. This research introduces a mathematical model that accounts for stochastic demand, transportation costs, holding costs, production capabilities, and lead times. The formulation minimizes cost while meeting uncertain demand and capacity constraints. Numerical examples demonstrate the model's use. Due to restrictions, the numerical example results are not supplied, but expected outputs include optimal routing and production plans, total cost minimization, sensitivity analysis, and insights into uncertainty. Comparisons with baseline situations can show how the proposed strategy improves resilience and efficiency. Supply chains may become more resilient, flexible, and efficient by optimizing routing and production planning in uncertainty. This research introduces stochastic components and resilient optimization methods to supply chain management. To improve the proposed approach in real-world supply chains, further research can examine improved algorithms, real-time data integration, and practical implementation strategies.
Data envelopment analysis for stochastic production and supply chain planning Hengki Tamando Sihotang; Patrisia Teresa Marsoit; Kouvelis Geovany Ortizan
International Journal of Enterprise Modelling Vol. 16 No. 3 (2022): Sep: Enterprise Modelling
Publisher : International Enterprise Integration Association

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (535.788 KB) | DOI: 10.35335/emod.v16i3.63

Abstract

This research presents a stochastic Data Envelopment Analysis (DEA) model for production and supply chain planning. The objective is to evaluate the efficiency of decision-making units (DMUs) in a system considering the stochastic nature of inputs and outputs. The proposed model incorporates uncertainty by assuming normal distributions for the stochastic variables. The model formulates a linear programming problem to maximize the efficiency scores of DMUs subject to constraints that ensure the efficiency of the system. The weights assigned to DMUs and input variables provide insights into their relative importance. A numerical example is presented to demonstrate the application of the model, and the results highlight the efficiency scores and weights for the DMUs. The findings contribute to improving decision-making in production and supply chain systems under uncertain conditions. The developed model offers a practical tool for evaluating efficiency and identifying areas for improvement in real-world systems. Further research can explore extensions and variations of the model to enhance its applicability in different contexts