Stochastic versus deterministic approach to coordinated supply chain scheduling
type: Item
instance of: scholarly article
title: Stochastic versus deterministic approach to coordinated supply chain scheduling
zbMATH Open document ID: 1426.90134
DOI: 10.1155/2017/3460721
published in: Mathematical Problems in Engineering
publication date: 2018-11-05T00:00:00Z
review text: Summary: The purpose of this paper is to consider coordinated selection of supply portfolio and scheduling of production and distribution in supply chains under regional and local disruption risks. Unlike many papers that assume the all-or-nothing supply disruption pattern, in this paper, only the regional disruptions belong to the all-or-nothing disruption category, while for the local disruptions all disruption levels can be considered. Two biobjective decision-making models, stochastic, based on the wait-and-see approach, and deterministic, based on the expected value approach, are proposed and compared to optimize the trade-off between expected cost and expected service. The main findings indicate that the stochastic programming wait-and-see approach with its ability to handle uncertainty by probabilistic scenarios of disruption events and the much simpler expected value problem, in which the random parameters are replaced by their expected values, lead to similar expected performance of a supply chain under multilevel disruptions. However, the stochastic approach, which accounts for all potential disruption scenarios, leads to a more diversified supply portfolio that will hedge against a variety of scenarios.
Mathematics Subject Classification ID: 90B35
Mathematics Subject Classification ID: 90B36
zbMATH DE Number: 6971984
Wikidata QID: Q59147477
author: Tadeusz J. Sawik
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2017/3460721
OpenAlex ID: W2625578406
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description: scientific article; zbMATH DE number 6971984