Abstract
This research is a development of a stochastic mixed integer linear programming (SMILP) model considering stochastic customer demand, to tackle the multi-product SCND problems. It also considers multi-period, multi-echelons, products inventories, considering locations capacities and associated cost elements. The model represents both location and allocation decisions of the supply chain which maximize the total expected profit. The effect of demand mean on the total expected profit and the effect of the number of scenarios on the CPU time are studied. The results have shown the effect of customers’ demands for each product in each period on the quantities of material delivered from each supplier to each factory, the quantities of products delivered from each factory and factory store to each distributor, the inventory of each product in each factory and distributor, the quantities of each type of product delivered from each distributor to each customer in each period. The model has been verified through a detailed example.
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