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- W2614682303 abstract "This research studies the impact of demand uncertainty to the supply chain design by using a stochastic programming approach. Each potential location has two modes of supply: long response time used before the demand is realized and short response lead time mode (with higher cost) used after the demand is realized. The capacity of each model will be optimally determined from the model. This means that each location allow the manufacturer to install machines to produce in a large quantity at low cost (due to economy of scale) and keep in the internal warehouse or to install flexible rapid response machines to produce with short lead time at high cost after the demand shortage is expected. Moreover, the model allows different production cost functions which the unit cost could be different when production quantity is different using piecewise function. A stochastic programming model is developed to handle the situation explained. We have conducted 4 experiments to test the model in different perspective; (1) Sampling test – to test the effect of the sample size to the result, (2) Parameter variation – to test how each variable affect the results, (3) Cost function testing – to reveal the property of different cost function and (4) Pair-T test to prove how short LT response facility could improve certain situation and mitigate the effect of demand uncertainty. Furthermore, for heuristic part, we applied linear relaxation and decomposition method on two binary variables to separate the model into two phases; (1) Location decision and (2) Segmentation decision. For the result, heuristic model affords to contribute the optimal result for about 26 out of 32 instances or 81.25% of the total number of computable instances deriving from every cost function. The average overall total profit gap is 0.32%. The average computational time reduction is 71.65%. Moreover, our heuristics model is able to solve big size problems which the optimal model failed to do within acceptable time." @default.
- W2614682303 created "2017-05-26" @default.
- W2614682303 creator A5088732572 @default.
- W2614682303 date "2015-01-01" @default.
- W2614682303 modified "2023-09-23" @default.
- W2614682303 title "STOCHASTIC PROGRAMMING MODEL FOR SUPPLY CHAIN DESIGN WITH SHORT RESPONSE TIME AND HEURISTIC" @default.
- W2614682303 doi "https://doi.org/10.14457/tu.the.2015.27" @default.
- W2614682303 hasPublicationYear "2015" @default.
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