Business Commons^™

A Supply Chain Design Model With Unreliable Supply, Lian Qi, Zuo-Jun Max Shen

Business and Information Technology Faculty Research & Creative Works

Uncertainties abound within a supply chain and have big impacts on its performance. We propose an integrated model for a three-tiered supply chain network with one supplier, one or more facilities and retailers. This model takes into consideration the unreliable aspects of a supply chain. the properties of the optimal solution to the model are analyzed to reveal the impacts of supply uncertainty on supply chain design decisions. We also propose a general solution algorithm for this model. Computational experience is presented and discussed.