Modeling and validation for supply chain network design with solid fixed-charge transportation, risk-pooling and inventory under demand uncertainty

Designing supply chain according to real-world situations is constantly one of the key issues of strategic planning in the supply chain. In this article, for the first time, a new mathematical model for supply chain network design issue has been proposed by taking the three-level single-source risk-pooling, the inventory in distribution centers with uncertain demand, as well as three-dimensional transport in a supply chain network system. Unlike previous works done in this area, and to be consistent with the actual situation, the possibility of use of several types of vehicles, for each stage exists. Uncertain customers’ demand has been considered and limitations, such as capacity of vehicles are considered. This issue has been formulated as a non- linear programming model. Finally, to validate the model, the computational results obtained from the simulation of real-world solutions to real-life examples, using a related software is suggested.

Keywords:

Risk pooling , solid transportation , single source , uncertainty