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A method for a robust optimization of joint product and supply chain design

Author

Listed:
  • Bertrand Baud-Lavigne

    (École Polytechnique de Montréal)

  • Samuel Bassetto

    (École Polytechnique de Montréal)

  • Bruno Agard

    (École Polytechnique de Montréal)

Abstract

This paper proposes a method for finding a robust solution to the problem of joint product family and supply chain design. Optimizing product design and the supply chain network at the same time brings substantial benefits. However, this approach involves decisions that can generate uncertainties in the long term. The challenge is to come up with a method that can adapt to most possible environments without straying too far from the optimal solution. Our approach is based on the generation of scenarios that correspond to combinations of uncertain parameters within the model. The performance of designs resulting from these scenario optimizations are compared to the performance of each of the other design scenarios, based on their probability of occurrence. The proposed methodology will allow practitioners to choose a suitable design, from the most profitable to the most reliable.

Suggested Citation

  • Bertrand Baud-Lavigne & Samuel Bassetto & Bruno Agard, 2016. "A method for a robust optimization of joint product and supply chain design," Journal of Intelligent Manufacturing, Springer, vol. 27(4), pages 741-749, August.
    • Handle: RePEc:spr:joinma:v:27:y:2016:i:4:d:10.1007_s10845-014-0908-5
    DOI: 10.1007/s10845-014-0908-5
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    References listed on IDEAS

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    1. Paul K. Humphreys, 2010. "Simultaneous configuration of platform products and manufacturing supply chains: comparative investigation into impacts of different supply chain coordination schemes," Post-Print hal-01789110, HAL.
    2. Lamothe, Jacques & Hadj-Hamou, Khaled & Aldanondo, Michel, 2006. "An optimization model for selecting a product family and designing its supply chain," European Journal of Operational Research, Elsevier, vol. 169(3), pages 1030-1047, March.
    3. Samir Dani, 2009. "Predicting and Managing Supply Chain Risks," International Series in Operations Research & Management Science, in: George A. Zsidisin & Bob Ritchie (ed.), Supply Chain Risk, chapter 4, pages 53-66, Springer.
    4. Klibi, Walid & Martel, Alain & Guitouni, Adel, 2010. "The design of robust value-creating supply chain networks: A critical review," European Journal of Operational Research, Elsevier, vol. 203(2), pages 283-293, June.
    5. Baud-Lavigne, Bertrand & Agard, Bruno & Penz, Bernard, 2012. "Mutual impacts of product standardization and supply chain design," International Journal of Production Economics, Elsevier, vol. 135(1), pages 50-60.
    Full references (including those not matched with items on IDEAS)

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