English, Article edition: Supply chain design under uncertainty using sample average approximation and dual decomposition Schütz, Peter; Tomasgard, Asgeir; Ahmed, Shabbir

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Physical Description
  • article
Language
  • English

Edition details

Title
  • Supply chain design under uncertainty using sample average approximation and dual decomposition
Author
  • Schütz, Peter
  • Tomasgard, Asgeir
  • Ahmed, Shabbir
Physical Description
  • article
Notes
  • We present a supply chain design problem modeled as a sequence of splitting and combining processes. We formulate the problem as a two-stage stochastic program. The first-stage decisions are strategic location decisions, whereas the second stage consists of operational decisions. The objective is to minimize the sum of investment costs and expected costs of operating the supply chain. In particular the model emphasizes the importance of operational flexibility when making strategic decisions. For that reason short-term uncertainty is considered as well as long-term uncertainty. The real-world case used to illustrate the model is from the Norwegian meat industry. We solve the problem by sample average approximation in combination with dual decomposition. Computational results are presented for different sample sizes and different levels of data aggregation in the second stage.
  • Supply chain design Stochastic programming Sample average approximation Dual decomposition
  • RePEc:eee:ejores:v:199:y:2009:i:2:p:409-419
Language
  • English
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