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Research of Models and Algorithms for Robust and Reliable Supply Chain Location

Author: ZhuChangHong
Tutor: HanZhiJun
School: Nanjing University of Technology and Engineering
Course: Management Science and Engineering
Keywords: Supply Chain Robustness Reliability Failure Cost Expected Cost Lacation Problem Optimal Problem
CLC: F224
Type: PhD thesis
Year: 2007
Downloads: 822
Quote: 3
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Generally we assume the condition of outside is certain as we design supply chainmodels. In fact, parameter estimates are usually inaccurate due to uncertainty offorecasts, measurement errors, changing demand, or other factors. Moreover, even allof the parameters of the supply chain are known, the system may be interrupted fromtime to time, for example, due to the bad weather, labor actions, etc.. This dissertationstudies the robustness and reliability of supply chain in two different cases, one is thatsystem may perform well with uncertain of data, such as demand, another is that systemperform well with the failure of parts of system.The first half of this dissertation we have searched is models for robust supply chainlocation. The first of these models is to minimize the expected cost, including costs forfacility location, transportation, and inventory. The second model adds some constraintsthat restrict the regret in any scenario to be within a pre-specified limit. Both models aresolved using Lagrangian relaxation. We also discuss regret-constrained versions of twoclassical facility location problems and develop algorithms for these problems based onvariable-splitting. The algorithms presented here can be used to solve minimax-regretversions of the corresponding models.The second half of the dissertation presents another notion to supply chain thatattempts to choose facility locations so that if a distribution center becomesunsuccessful, the cost of operating the system is not excessive. We discuss two types ofreliability models, one that considers the maximum failure cost and one that considersthe expected failure cost. We develop several formulations of the maximum failure costproblem and present relaxations for them. The expected failure cost model is solvedusing Lagrangian relaxation. In the end, two Computational results of the modelsdemonstrate it is possible to improve reliability by a small increases in cost.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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