Modeling Robust and Reliable Supply Chains

Markus Bundschuh (markus.bundschuhweb.de)
Diego Klabjan (klabjanuiuc.edu)
Deborah Thurston (thurstonuiuc.edu)

Abstract: We present formulations for the strategic design of robust and reliable supply chains with long term contracting. The inability to deliver a supply part due to unexpected events in a complex supply chain can have a significant impact on the performance of a supply chain. Reliable and robust supply chains leverage cost and risk of not obtaining a supply. Reliable chains are less likely to be disrupted, whereas robust chains still perform well in the case of disrupted supply channels. We consider an integrated inbound supply chain of a manufacturer and we embed aspects of reliability and robustness into the traditional supply chain model. We provide computational results on two instances.

Keywords: supply chain design, modeling

Category 1: Applications -- OR and Management Sciences

Category 2: Applications -- OR and Management Sciences (Supply Chain Management )

Citation: Department of Mechanical and Industrial Engineering, University of Illinois at Urbana-Champaign, Urbana, IL

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Entry Submitted: 07/02/2003
Entry Accepted: 07/02/2003
Entry Last Modified: 09/21/2003

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