Abstract
This article extends the supply chain planning problem under risk by including the visibility of purchasing information and sourcing flexibility. A novel geometric index is developed to measure purchasing visibility by including different attributes of the required data visibility level. The problem is formulated as a mixed integer non-linear optimisation model. We tailor an outer approximation (OA) algorithm as a decomposition-based algorithm to solve the resultant mathematical model. Our research experiments indicate how the basic OA algorithm could be applied in the non-convex models by utilising a reformulation-linearisation technique and a convexification scheme. Moreover, the superiority of our proposed OA algorithm is shown in terms of solution quality and CPU time.
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