Resilient supply chain network design under uncertain environment

Abstract

Modern supply chain operates in a highly uncertain environment caused by natural disasters and market changes. Such a fact has motivated academics and practitioners to pay more attention to the supply chain resilience. This paper reports on designing a resilient supply chain under uncertain environment by an uncertain programming method. The desired resilience level against disruption is achieved with less redundancy by controlling them in the presented models. And parameter uncertainty caused by the limited historical data is also addressed using uncertainty theory. To cope with the problem's complexity, we convert the proposed models into their deterministic formulations, which can easily be solved by cplex solver. The results from sensitivity analysis demonstrate the necessity of including uncertainty during the planning phase of supply chain network design. The performance of resilience constraint and the positive effect of sticker redundancy constraint in improving service level are also investigated fully.