Warehouse redesigning in a three-echelon supply chain network with consideration of routing under uncertainty

Abstract

This paper addresses the problem of redesigning a three-echelon supply chain network under uncertainty. Since one of the most realistic problems that supply chains are dealt with is routing of vehicles, routing constraints with a split delivery condition are considered in our proposed model. Also, the possibility of outsourcing is considered in order to satisfy demands that exceed the production capacity. Furthermore, in order to deal with the presence of uncertainty in the problem, a light robust approach is developed. The performance of the proposed model is illustrated using a simulation procedure. Sensitivity analysis on the proposed model is also presented in the paper. The results show that the proposed method has a better performance than Light Robust approach and can be used as a useful managerial tool in redesign problems.