ABSTRACT This study focuses on designing a resilient supply chain for the apparel industry. We address the challenges of uncertain replenishment orders and production capacities in the apparel industry by developing a multi-objective robust two-stage stochastic programming model. The model optimizes total costs, customer service level, and financial risk. A continuous probability distribution is employed to model uncertainty, and downside risk is used as a risk measure. Computational results based on a real-world apparel company demonstrate the model’s effectiveness in enhancing supply chain resilience. By significantly reducing financial risk while maintaining acceptable cost levels, the proposed approach provides valuable insights for industry practitioners. In order to further analyze the impact of uncertain parameters on the planning problem’s performance, we carry out a sensitivity analysis. From a practical standpoint, the results highlight the effectiveness of the robust optimization model. The optimal solutions derived from the downside risk management approach show a substantial reduction in risk, with DRΩ decreasing by an impressive 83%. This significant risk mitigation is achieved with only a minimal increase in total costs, which remains under 4%. These findings emphasize the practical advantages of robust optimization, offering critical insights for researchers and practitioners to improve efficiency, reliability and financial stability in Supply Chain management.
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