Optimization of multi-echelon supply chain networks with uncertain sales prices

Abstract

A multi-product, multi-stage, and multi-period production and distribution planning model is proposed in this paper to tackle the compromised sales prices and the total profit problem of a multi-echelon supply chain network with uncertain sales prices. This model is constructed as a mixed-integer nonlinear programming problem to achieve a maximum total profit of the whole network and to guarantee the maximum satisfactory levels of sellers' and buyers' preference on sales prices. For the purpose that a compensatory solution among all participants of the supply chain can be achieved, a fuzzy decision-making method is proposed and, by means of applying it to a numerical example, proved effective in providing a compromised solution in a multi-echelon supply chain network. ? 2004 The Society of Chemical Engineers, Japan.