The Robust Design of EOQ Considering the Compound Effect of Both Noise Uncertainty and Meta-modeling Uncertainty

Abstract

The goal of robust design optimization for the supply chain is to improve the quality of the supply chain by minimizing the deteriorating effects of noise variables. This robustness can be achieved by different approaches such as meta-model-based robust design optimization. However, the aforementioned methods nearly ignore the meta-modeling uncertainty quantifying the mismatch between the meta-model and the simulation process. But meta-modeling uncertainty may have much effect on the results of the robust design optimization for the supply chain. In this paper, we consider the compound effect of both uncertainty in noise variables and meta-modeling uncertainty and apply the results to Economic Order Quantity (EOQ) model. Simulation results show the robust optimization considering the meta-modeling uncertainty may require order quantities that differ from the robust optimization with considering meta-modeling uncertainty.