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Showing 6 results for Stochastic Programming

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Volume 23, Issue 2 (6-2012)
Abstract

Design of a logistics network in proper way provides a proper platform for efficient and effective supply chain management. This paper studies a multi-period, multi echelon and multi-product integrated forward-reverse logistics network under uncertainty. First, an efficient complex mixed-integer linear programming (MILP) model by considering some real-world assumptions is developed for the integrated logistics network design to avoid the sub-optimality caused by the separate design of the forward and reverse networks. Then, the stochastic counterpart of the proposed MILP model is used to measure the conditional value at risk (CVaR) criterion, as a risk measure, that can control the risk level of the proposed model. The computational results show the power of the proposed stochastic model with CVaR criteria in handling data uncertainty and controlling risk levels.
Mahdi Bashiri, Hamidreza Rezaei,
Volume 24, Issue 1 (2-2013)
Abstract

In this paper, we propose an extended relocation model for warehouses configuration in a supply chain network, in which uncertainty is associated to operational costs, production capacity and demands whereas, existing researches in this area are often restricted to deterministic environments. In real cases, we usually deal with stochastic parameters and this point justifies why the relocation model under uncertainty should be evaluated. Albeit the random parameters can be replaced by their expectations for solving the problem, but sometimes, some methodologies such as two-stage stochastic programming works more capable. Thus, in this paper, for implementation of two stage stochastic approach, the sample average approximation (SAA) technique is integrated with the Bender's decomposition approach to improve the proposed model results. Moreover, this approach leads to approximate the fitted objective function of the problem comparison with the real stochastic problem especially for numerous scenarios. The proposed approach has been evaluated by two hypothetical numerical examples and the results show that the proposed approach can find better strategic solution in an uncertain environment comparing to the mean-value procedure (MVP) during the time horizon.
Aliakbar Hasani,
Volume 28, Issue 2 (6-2017)
Abstract

In this paper, a comprehensive mathematical model for designing an electric power supply chain network via considering preventive maintenance under risk of network failures is proposed. The risk of capacity disruption of the distribution network is handled via using a two-stage stochastic programming as a framework for modeling the optimization problem. An applied method of planning for the network design and power generation and transmission system via considering failures scenarios, as well as network preventive maintenance schedule, is presented. The aim of the proposed model is to minimize the expected total cost consisting of power plants set-up, power generation and the maintenance activities. The proposed mathematical model is solved by an efficient new accelerated Benders decomposition algorithm. The proposed accelerated Benders decomposition algorithm uses an efficient acceleration mechanism based on the priority method which uses a heuristic algorithm to efficiently cope with computational complexities. A large number of considered scenarios are reduced via using a k-means clustering algorithm to decrease the computational effort for solving the proposed two-stage stochastic programming model. The efficiencies of the proposed model and solution algorithm are examined using data from the Tehran Regional Electric Company. The obtained results indicate that solutions of the stochastic programming are more robust than the obtained solutions provided by a deterministic model.


Mostafa Ekhtiari, Mostafa Zandieh, Akbar Alem-Tabriz, Masood Rabieh,
Volume 29, Issue 1 (3-2018)
Abstract

Supplier selection is one of the influential decisions for effectiveness of purchasing and manufacturing policies under competitive conditions of the market. Regarding the fact that decision makers (DMs) consider conflicting criteria for selecting suppliers, multiple-criteria programming is a promising approach to solve the problem. This paper develops a nadir compromise programming (NCP) model for decision-making under uncertainty on the selection of suppliers within the framework of binary programming. Depending on the condition of uncertainty, three statuses are taken into consideration and a solution approach is proposed for each status. A pure deterministic NCP model is presented for solving the problem in white condition (certainty of data) and a solution approach resulted from combination of NCP and stochastic programming is introduced to solve the model in black (uncertainty of data) situation. The paper also proposes a NCP model under certainty and uncertainty for solving problem under grey (a combination of certainty and uncertainty of data) conditions. The proposed approaches are illustrated for a real problem in steel industry with multiple objectives. Also, a simulation approach has been designed in order to examine the results obtained and also verifies capabilities of the proposed model.


Fatemeh Bayatloo, Ali Bozorgi-Amiri,
Volume 29, Issue 4 (12-2018)
Abstract

Development of every society is incumbent upon energy sector’s technological and economic effectiveness. The electricity industry is a growing and needs to have a better performance to effectively cover the demand. The industry requires a balance between cost and efficiency through careful design and planning. In this paper, a two-stage stochastic programming model is presented for the design of electricity supply chain networks. The proposed network consists of power stations, transmission lines, substations, and demand points. While minimizing costs and maximizing effectiveness of the grid, this paper seeks to determine time and location of establishing new facilities as well as capacity planning for facilities. We use chance constraint method to satisfy the uncertain demand with high probability. The proposed model is validated by a case study on Southern Khorasan Province’s power grid network, the computational results show that the reliability rate is a crucial factor which greatly effects costs and demand coverage. 
Shahla Zandi, Reza Samizadeh, Maryam Esmaeili,
Volume 34, Issue 3 (9-2023)
Abstract

A coalition loyalty program (CLP) is a business strategy adopted by companies to increase and retain their customers. An operational challenge in this regard is to determine the coordination mechanism with business partners. This study investigated the role of revenue-sharing contracts (RSCs) considering customer satisfaction in coalition loyalty reward supply chain planning. A two-stage stochastic programming approach was considered for the solution considering the demand uncertainty. We aimed to investigate the impact of RSCs on the decision-making and profitability of the host firm of this supply chain taking into account the maximization of the profit coming from the CLP compared to the more common wholesale price contract (WPC). After the model was solved, computational experiments were performed to evaluate and compare the effects of RSCs and WPCs on the performance of the loyalty program (LP). The results revealed that RSC is an effective incentive to increase the host’s profit and reduce its cost. These findings add new insights to the management literature, which can be used by business decision makers.
 

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