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Multi-Loss WCVaR Risk Decision Optimization Based On Weight for Centralized Supply Problem of Direct Chain Enterprises

Author

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  • Xu Leiyan

    (School of Management, Zhejiang University of Technology, Hangzhou 310023, P. R. China2Zhejiang University of Finance and Economics, Hangzhou 310018, P. R. China)

  • Zhiqing Meng

    (School of Management, Zhejiang University of Technology, Hangzhou 310023, P. R. China)

Abstract

In recent years, the centralized supply strategy has been widely adopted by direct chain enterprises (DCEs) and become an indispensable means of operation. First, a general probability distribution density function cluster is used to describe the uncertainty demand from all retailers of the DCE. Second, a multi-loss WCVaR centralized supply risk decision optimization robust model based on weight is presented for the DCE. We prove that this model is equivalent to an single-objective optimization model. Finally, we set up a single-period multi-loss WCVaR centralized supply risk decision optimization robust model based on weight for production allocation problem for a centralized-supply direct chain food enterprise. The numerical results illustrate that the DCE may obtain the approximately robust total production volume and the robust retail volume allocated to all retailers, which is the minimal total supply loss for the DCE.

Suggested Citation

  • Xu Leiyan & Zhiqing Meng, 2019. "Multi-Loss WCVaR Risk Decision Optimization Based On Weight for Centralized Supply Problem of Direct Chain Enterprises," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(02), pages 1-16, April.
    • Handle: RePEc:wsi:apjorx:v:36:y:2019:i:02:n:s0217595919400074
    DOI: 10.1142/S0217595919400074
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    References listed on IDEAS

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