Robust Optimizations Model For The Decision-making Of Manufacturer Considering Quality Defect

Under the conditions of modern market economy, with the increasingly fierce global competition, enterprises face more intense changes than the past for improving service, such as the changeable market demand, fluctuant production price, higher quality requirement, and lower cost.This research on the decision-making of manufacturer with robust optimization is not only considering the profit of the manufacturer as a traditional objective but also considering the quality of the production as a main objective. The tradeoff between the two objectives will affect the final result of the manufacturer’s supply chain network decision.The main purpose of our paper is to eliminate or weaken the uncertain factors of supply chain, which is because of the volatility of demand and price will cause the system in chaos, that is, increase the disorder of the system. So in this research we fully considering the uncertain factors in the design of manufacturer’s supply chain network for describing the whole world in an effect way in order to reduce the operating costs and improve its services.We divide this paper into four parts, first, analyze the research background and significance of the paper and introduce the relative concepts of supply chain network design. Then, we introduce a two-layer, multi-stage, multi-product, multi-echelon manufacturer supply chain network design model considering two conflicting objectives under deterministic demand and price. After that, we use scenario analysis and interval analysis to develop a robust optimization model under stochastic demand and price. Finally, we apply the model in the same motivating example, only that the demand or price data is changed to be stochastic, and carries out a comparative analysis with the results from the deterministic model to the model of this paper is robust.