A PSO- Based Robust Optimization Approach for Supply Chain Collaboration with Demand Uncertain

Abstract

A robust optimization approach is proposed to solve the problem of supply chain collaboration under a demand uncertain environment. The proposed approach is universal and able to adapt to various demand models. First, the uncertain demand is described by a set of sampling sequences, and the total cost of supply chain is calculated based on these sequences to evaluate a collaboration scheme. Then a particle swarm optimization (PSO) is employed to find the optimal collaboration scheme which leads to a minimum total cost of supply chain. Numerical experiments show that the proposed approach can produce a robust solution that is insensible to the effect of demand uncertainty. © 2011 Springer-Verlag.