Joint location-two-echelon-inventory supply chain model with stochastic demand

Malek Abu Alhaj, Ali Diabat

    Research output: Contribution to journalConference article

    Abstract

    Existing supply chain location-inventory models optimize over inventory policies and distribution center locations, but use a deterministic approach that does not take into consideration the uncertainty of demand. We present an extension to the deterministic multiechelon joint location-inventory model that adds uncertainty by including a new variable that reflects the probability of different scenarios. We test the model using three different demand scenarios. To compare the results for the stochastic case with those of the deterministic case, the model is solved as a deterministic model under one scenario, and the cost of assuming a scenario other than the true scenario is calculated.

    Original languageEnglish (US)
    Pages (from-to)25-30
    Number of pages6
    JournalIEEE Transactions on Neural Systems and Rehabilitation Engineering
    Volume2011-January
    StatePublished - Jan 1 2011
    Event41st International Conference on Computers and Industrial Engineering 2011 - Los Angeles, CA, United States
    Duration: Oct 23 2011Oct 25 2011

    Fingerprint

    Supply chains
    Joints
    Equipment and Supplies
    Uncertainty
    Costs and Cost Analysis
    Costs

    Keywords

    • Integer programming
    • Location problem
    • Supply chains
    • Uncertainty modeling

    ASJC Scopus subject areas

    • Neuroscience(all)
    • Biomedical Engineering
    • Computer Science Applications

    Cite this

    Joint location-two-echelon-inventory supply chain model with stochastic demand. / Alhaj, Malek Abu; Diabat, Ali.

    In: IEEE Transactions on Neural Systems and Rehabilitation Engineering, Vol. 2011-January, 01.01.2011, p. 25-30.

    Research output: Contribution to journalConference article

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