Stochastic versus deterministic approach to coordinated supply chain scheduling
Summary: The purpose of this paper is to consider coordinated selection of supply portfolio and scheduling of production and distribution in supply chains under regional and local disruption risks. Unlike many papers that assume the all-or-nothing supply disruption pattern, in this paper, only the regional disruptions belong to the all-or-nothing disruption category, while for the local disruptions all disruption levels can be considered. Two biobjective decision-making models, stochastic, based on the wait-and-see approach, and deterministic, based on the expected value approach, are proposed and compared to optimize the trade-off between expected cost and expected service. The main findings indicate that the stochastic programming wait-and-see approach with its ability to handle uncertainty by probabilistic scenarios of disruption events and the much simpler expected value problem, in which the random parameters are replaced by their expected values, lead to similar expected performance of a supply chain under multilevel disruptions. However, the stochastic approach, which accounts for all potential disruption scenarios, leads to a more diversified supply portfolio that will hedge against a variety of scenarios.
- Coordinating a supply chain with effort and price dependent stochastic demand
- A stochastic programming approach for supply chain network design under uncertainty
- Scheduling coordination problems in supply chain planning
- Supply chain coordination based on consignment stock in multi-cycle stochastic demand
- Advances in stochastic programming and robust optimization for supply chain planning
- Scheduling in a two-stage supply chain with uncertain parameters
- Supply Chain Scheduling: Conflict and Cooperation in Assembly Systems
- Scheduling in supply chains using mixed integer programming
- Stochastic programming for global supply chain planning under uncertainty: an outline
- Integrated supply chain planning under uncertainty using an improved stochastic approach
- Analyzing the quality of the expected value solution in stochastic programming
- Infinite-horizon models for inventory control under yield uncertainty and disruptions
- Integrated Production and Outbound Distribution Scheduling: Review and Extensions
- Integrated production/distribution planning in supply chains: An invited review
- On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks
- Optimal distribution (re)planning in a centralized multi-stage supply network under conditions of the ripple effect and structure dynamics
- Optimization of cost and service level in the presence of supply chain disruption risks: single vs. multiple sourcing
- Scheduling in supply chains using mixed integer programming
- Stochastic linear programming. Models, theory, and computation.
- The value of stochastic modeling in two-stage stochastic programs with cost uncertainty
- A stochastic program to evaluate disruption mitigation investments in the supply chain
- Optimal supply diversification strategy under supply disruption
- Scenario analysis-based decision and coordination in supply chain management with production and transportation scheduling
- Scheduling in a two-stage supply chain with uncertain parameters
- Integrated Supply Chain Management via Randomized Rounding
This page was built for publication: Stochastic versus deterministic approach to coordinated supply chain scheduling
Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q1992619)
