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Collaborative production planning of supply chain under price and demand uncertainty

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  • Zhang, Guoquan
  • Shang, Jennifer
  • Li, Wenli

Abstract

This research is motivated by an automobile manufacturing supply chain network. It involves a multi-echelon production system with material supply, component fabrication, manufacturing, and final product distribution activities. We address the production planning issue by considering bill of materials and the trade-offs between inventories, production costs and customer service level. Due to its complexity, an integrated solution framework which combines scatter evolutionary algorithm, fuzzy programming and stochastic chance-constrained programming are combined to jointly take up the issue. We conduct a computational study to evaluate the model. Numerical results using the proposed algorithm confirm the advantage of the integrated planning approach. Compared with other solution methodologies, the supply chain profits from the proposed approach consistently outperform, in some cases up to 13% better. The impacts of uncertainty in demand, material price, and other parameters on the performance of the supply chain are studied through sensitivity analysis. We found the proposed model is effective in developing robust production plans under various market conditions.

Suggested Citation

  • Zhang, Guoquan & Shang, Jennifer & Li, Wenli, 2011. "Collaborative production planning of supply chain under price and demand uncertainty," European Journal of Operational Research, Elsevier, vol. 215(3), pages 590-603, December.
    • Handle: RePEc:eee:ejores:v:215:y:2011:i:3:p:590-603
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    3. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2022. "Merging make-to-stock/make-to-order decisions into sales and operations planning: A multi-objective approach," Omega, Elsevier, vol. 107(C).
    4. Sun, Wei & Huang, Guo H. & Lv, Ying & Li, Gongchen, 2013. "Inexact joint-probabilistic chance-constrained programming with left-hand-side randomness: An application to solid waste management," European Journal of Operational Research, Elsevier, vol. 228(1), pages 217-225.
    5. Sajjad Aslani Khiavi & Hamid Khaloozadeh & Fahimeh Soltanian, 2021. "Suboptimal sliding manifold For nonlinear supply chain with time delay," Journal of Combinatorial Optimization, Springer, vol. 42(1), pages 151-173, July.
    6. Songtao Zhang & Yanting Hou & Siqi Zhang & Min Zhang, 2017. "Fuzzy Control Model and Simulation for Nonlinear Supply Chain System with Lead Times," Complexity, Hindawi, vol. 2017, pages 1-11, September.
    7. Ivanov, Dmitry & Sokolov, Boris, 2013. "Control and system-theoretic identification of the supply chain dynamics domain for planning, analysis and adaptation of performance under uncertainty," European Journal of Operational Research, Elsevier, vol. 224(2), pages 313-323.
    8. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2020. "Tactical sales and operations planning: A holistic framework and a literature review of decision-making models," International Journal of Production Economics, Elsevier, vol. 228(C).
    9. Debnath, Biswajit & El-Hassani, Rihab & Chattopadhyay, Amit K. & Kumar, T. Krishna & Ghosh, Sadhan K. & Baidya, Rahul, 2022. "Time evolution of a Supply Chain Network: Kinetic modeling," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 607(C).
    10. Volling, Thomas & Matzke, Andreas & Grunewald, Martin & Spengler, Thomas S., 2013. "Planning of capacities and orders in build-to-order automobile production: A review," European Journal of Operational Research, Elsevier, vol. 224(2), pages 240-260.
    11. R.S. Rogulin, 2020. "Modeling of Promising Interaction Between a Timber Industry Enterprise and a Commodity Exchange in Russia," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(4), pages 489-511.
    12. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2023. "Design of a sales plan in a hybrid contractual and non-contractual context in a setting of limited capacity: A robust approach," International Journal of Production Economics, Elsevier, vol. 260(C).
    13. Wang, Shixuan & Syntetos, Aris A. & Liu, Ying & Di Cairano-Gilfedder, Carla & Naim, Mohamed M., 2023. "Improving automotive garage operations by categorical forecasts using a large number of variables," European Journal of Operational Research, Elsevier, vol. 306(2), pages 893-908.
    14. Amit K Chattopadhyay & Biswajit Debnath & Rihab El-Hassani & Sadhan Kumar Ghosh & Rahul Baidya, 2020. "Cleaner Production in Optimized Multivariate Networks: Operations Management through a Roll of Dice," Papers 2003.00884, arXiv.org.
    15. Cheng, Bayi & Leung, Joseph Y.-T. & Li, Kai & Yang, Shanlin, 2019. "Integrated optimization of material supplying, manufacturing, and product distribution: Models and fast algorithms," European Journal of Operational Research, Elsevier, vol. 277(1), pages 100-111.

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