Research On Robust Optimization Model And Application Of Supply Chain Logistics Operation Based On EVA

With economic globalization,changes in the market present a variety of uncertainties.Every node enterprise in supply chain network coordinates with each other,which becomes more and more important.As an integral part of supply chain management,supply chain logistics operation performance evaluation is concerned by more enterprises in recent years.Creating shareholder value is commonly considered as the paramount business goal,and integrated performance and risk management is the key lever to increase shareholder value holistically.Economic Value Added(EVA)as an indicator of the total value overcomes the shortages of the traditional performance indicators(such as expected profit or cost)in terms of performance evaluation.Not only can EVA reflect a more realistic economic profit,but EVA can also effectively combine the objective of maximizing shareholder value with internal operations,which achieves a comprehensive evaluation of supply chain performance.At the mid-term level,sales and operations planning(S&OP)provides a suitable framework for EVA-based performance optimization due to the cross-functional approach integrating logistics operation and financial decision-making.With the demand uncertainty of consumer market,decision makers attitude towarcds risk will directly affects their final decision,which thereby affects the integrated performance of the company.Therefore,to support an effective decision for supply chain manager to achieve a two-stage robust optimization based on EVA performance of logistics operation of a four-stage supply chain network which consists of raw material suppliers,manufacturers,warehouses and sales markets is studied by considering the demand uncertainty and resulted risk management problem in mid-term operations.The following is the main research content of this paper.Firstly,the economic value added(EVA)indicator is selected to measure the operational performance of the supply chain logistics,with the consideration of both physical flow and capital flow.And the constraints of the model cover both logistics and finance.Secondly,on the basis of above research,both supply chain demand uncertainty and risk attitude of decision makers are considered.The market demand is assumed to be uncertain and described as a series of discrete scenarios with specific probabilities.A robust optimization model for supply chain logistics operation based on economic value added is developed under mean-variance.Thirdly,the interval uncertain sets which the uncertain discrete demand distribution probability belongs to are considered,and the robust optimization model for supply chain logistics operation based on EVA is developed with the max-min method.Furthermore,considering risk attitude of decision makers who face with demand uncertainty,taking the conditional value-at-risk(CVaR)as the measurement,the robust optimization model for supply chain logistics operation based on EVA is developed under mean-CVaR criterion.Finally,on the basis of operational data,the above models are solved and analyzed by using Lingo 11.0.With regard to the robust optimization model for supply chain log:istics operation based on economic value added under mean-variance,the impact of the variance coefficient and risk-aversion weight on the EVA performances of supply chain logistics operation and the trade-offs between solution robustness and model robustness are analyzed.Besides,EVA-based operational performances of supply chain logistics are also discussed with the variation of both market and finance parameters.The results show that the supply chain network can achieve good robustness under appropriate variance coefficient and risk-aversion weight.With regard to the robust optimization model for supply chain logistics operation EVA based on interval uncertain sets,the performance loss of the model is discussed.The results show that the robust strategies obtained by the approach proposed in this paper have good robustness and can restrain the effect of uncertainty on supply chain performance effectively.With regard to the robust optimization model for supply chain logistics operation EVA based on interval uncertain sets under mean-CVaR criterion,the impact of the mean-risk weight and risk-aversion level of the decision makers on the EVA performance of supply chain logistics operation is analyzed respectively under two robust counterpart models.In addition,through design of experiments(DOE),the effects of both the mean-risk weight and risk-aversion level of the decision makers on the mean-CVaR performance of supply chain logistics operation are further examined.