Science Journal of Business and Management
Volume 4, Issue 2, April 2016, Pages: 61-66
Received: May 4, 2016;
Published: May 5, 2016
Views 2662 Downloads 89
Li Chenlu, School of Management, Shanghai University, Shanghai, China
Considering the inaccurate demand forecasting in supply chain, we introduce robust optimization to reduce uncertainty. The method is mainly to modify the probability distribution of the demand, in order to obtain a more accurate demand. A classical model and a corresponding robust model are established in the context of a fixed number of products offered by the supplier. As to calculation, we also propose the fast Fourier transform approach which greatly reduces the amount of computation. Finally, the process of robust optimization and improved algorithm are interpreted by numerical examples. The results show that the expected revenue of the robust model is lower. Because the method is conservative and robust.
The Robust Optimization in Centralized Supply Chain, Science Journal of Business and Management.
Vol. 4, No. 2,
2016, pp. 61-66.
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