Benders Decomposition Algorithm for a Build-to-Order Supply Chain Problem Under Uncertainty

Since customization increases, build-to-order systems have received greater attention from researchers and practitioners. This paper presents a new build-to-order supply chain model with multiple objectives that minimize the total cost and lead time and, also, maximize the quality level. The model is first formulated in a deterministic condition and, then, the uncertainty of the cost and quality by the scenario-based approach to solving a robust optimization was investigated. The return policy and outsourcing are the new issues in a build-to-order supply chain considering the cost and inventory. A Benders decomposition algorithm is used to solve and validate the model. Finally, the related results are analyzed and compared with the results obtained by CPLEX for deterministic and scenario-based models

Keywords:

Build-to-order , Multi-objective supply chain , Benders decomposition