Research On Model And Algorithm Of Four-echelon Facilities Location-Inventory Problem Under Supply Disruption Considering Risk Attitude

In recent years, more and more enterprises pay more attention to the supplier selection of supply chain and facility’s location-inventory problem which make it difficult to solve LIP. What’s more, the interruption of the global supply chain had a serious impact on the overall operation of the enterprise. Therefore, research on facility location-inventory problem is of great significance.The traditional research on multi-echelon facilities’location-inventory problem mostly focus on the enterprises’economic benefit but ignore the risk, or study on how to manage the risk defense or emergency management after the completion of supply chain planning, but not incorporate risk into the model building, of course did not consider risk decision makers’ different attitudes which will have different impact on supply chain design. In this thesis, we will consider four-echelon facilities LIP under supply disruption and consider the impact of decision-makers’risk attitude on the decision. This thesis’main work includes:(1) Incorporate upstream suppliers’choice into traditional three-level supply chain location-inventory mode, the income of the whole supply chain and the cost of each link were analyzed in detail, and finally get the four-echelon facilities LIP model without considering supply disruptions.(2) Incorporate randomness of supply disruptions into four-echelon facilities’LIP model in the form of probability, then introduce the risk attitude coefficient of decision-maker through mean-variance model under the supply disruption, considering different decision makers’attitude to profit deviation made by risk caused different the effects on the supply chain design.(3) Particle swarm algorithm is designed to solve the proposed model, and Matlab software programming is used to obtain the solution. To verify the feasibility and effectiveness of the model by the examples of CNPC northeast chemical sales company, finally got in-depth insights of four-echelon facilities’LIP model under the supply disruption through sensitivity analysis of the related parameters.The model proposed in this paper is a meaningful supplement of the LIP model, to some extent, it help to improve the overall supply chain profit and can withstand a certain degree of risk. Designing and programming of particle swarm optimization (PSO) under different parameters provides the numerical results and a series of conclusions for enterprise to make decision on location and inventory control strategies.