The University of Southampton
University of Southampton Institutional Repository

Robust optimisation applied to uncertain production loading problems with importing quota limits under global supply chain environments

Robust optimisation applied to uncertain production loading problems with importing quota limits under global supply chain environments
Robust optimisation applied to uncertain production loading problems with importing quota limits under global supply chain environments
Global supply chain management presents some special challenges and issues for manufacturing companies in planning production: these challenges are different from those discussed in domestic production plans. Globally loading production among different plants usually involves substantial uncertainty and great risk because of uncertain market demand, fluctuating quota costs incurred in the global manufacturing process, and shortening lead times. This study proposes a dual-response production loading strategy for two types of plants—company-owned and contracted—to hedge against the short lead time and uncertainty, and to be as responsive and flexible as possible to cope with the uncertainty and risk involved. Three types of robust optimization models are presented: the robust optimization model with solution robustness, the robust optimization model with model robustness, and the robust optimization model with the trade-off between solution robustness and model robustness. A series of experiments are designed to test the effectiveness of the proposed robust optimization models. Compared with the results of the two-stage stochastic recourse programming model, the robust optimization models provide a more responsive and flexible system with less risk, which is particularly important in the current context of global competitiveness.
dual-response production loading, global supply chain management, linear programming, model robustness, production loading, robust optimization, stochastic programming, solution robustness, two-stage stochastic resource programming
0020-7343
849-882
Wu, Y.
e279101b-b392-45c4-b894-187e2ded6a5c
Wu, Y.
e279101b-b392-45c4-b894-187e2ded6a5c

Wu, Y. (2006) Robust optimisation applied to uncertain production loading problems with importing quota limits under global supply chain environments. International Journal of Production Research, 44 (5), 849-882. (doi:10.1080/00207540500285040).

Record type: Article

Abstract

Global supply chain management presents some special challenges and issues for manufacturing companies in planning production: these challenges are different from those discussed in domestic production plans. Globally loading production among different plants usually involves substantial uncertainty and great risk because of uncertain market demand, fluctuating quota costs incurred in the global manufacturing process, and shortening lead times. This study proposes a dual-response production loading strategy for two types of plants—company-owned and contracted—to hedge against the short lead time and uncertainty, and to be as responsive and flexible as possible to cope with the uncertainty and risk involved. Three types of robust optimization models are presented: the robust optimization model with solution robustness, the robust optimization model with model robustness, and the robust optimization model with the trade-off between solution robustness and model robustness. A series of experiments are designed to test the effectiveness of the proposed robust optimization models. Compared with the results of the two-stage stochastic recourse programming model, the robust optimization models provide a more responsive and flexible system with less risk, which is particularly important in the current context of global competitiveness.

This record has no associated files available for download.

More information

Published date: 2006
Keywords: dual-response production loading, global supply chain management, linear programming, model robustness, production loading, robust optimization, stochastic programming, solution robustness, two-stage stochastic resource programming

Identifiers

Local EPrints ID: 37002
URI: http://eprints.soton.ac.uk/id/eprint/37002
ISSN: 0020-7343
PURE UUID: 9a38430b-7c4e-4caa-85f8-21f63bb52786

Catalogue record

Date deposited: 22 May 2006
Last modified: 16 Mar 2024 03:39

Export record

Altmetrics

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×