Robust design and planning for a multi-mode multi-product supply network: a dairy industry case study

Abstract

As a salient matter of decision, supply chain design and planning has been a point of attraction for both researchers and practitioners. In real-world problems, the data based on which the decision is made are subject to uncertainty. Robust optimization is a well-known approach developed for modeling the uncertainty in such cases. In this research, a robust supply chain network design (RSCND) problem considering multiple products, multiple transportation modes, monetary value of time and uncertainty in transportation costs, demand and supply is studied. To endorse applicability of the proposed model, a case study of dairy products packaging and distribution network is studied and comprehensive analyses are provided. In addition, through using the proposed linearization technique, the model can be solved within a reasonable amount of time by utilizing conventional exact methods for small- and medium-size problems.