A Study On Supply Chain Network Design Under Uncertainty

The design of supply chain network is an important strategic decision and it is in relation to whether the whole network runs effectively for a long time or not. Since there are lots of uncertainties in operation for enterprises/corporations, it is very necessary to take all these factors into account. This paper studies the design of supply chain network under uncertainty, which includes the analysis of its structure characteristics and types, the main factors influencing design and some principles which should be obeyed in design. The main work focuses on the network design model under uncertainty. The design of general supply chain network under random demands is discussed with distribution-based approach. In order to minimize the expected loss of overstock and shortage, first of all the optimal supply is determined, and then a mixed integer linear programming model under certainty is built. Based on that, as to its coming to being and studying necessity, the reverse supply chain network and forward supply chain network are integrated into a closed-loop supply chain network. Considering the uncertainty of product demand and the number of returned product, the optimization design model of a closed-loop supply chain network under uncertainty is proposed. Compared with the ago stochastic model, this solution is simpler. According to the characteristics of the models, an arithmetic example is given respectively.