A multi-objective robust operation model for electronic market enabled supply Chain with uncertain demands

A multi-objective robust operation model is proposed in this paper for an electronic market enabled supply chain consisting of multi-supplier and multi-customer with uncertain demands. Suppliers in this supply chain provide many kinds of products to different customers directly or through electronic market. Uncertain demands are described as a scenario set with certain probability; the supply chain operation model is constructed by using the robust optimization method based on scenario analyses. The operation model we proposed is a multi-objective programming problem satisfying several conflict objectives, such as meeting the demands of all customers, minimizing the system cost, the availabilities of suppliers’ capacities not below a certain level, and robustness of decision to uncertain demands. The results of numerical examples proved that the solution of the model is most conservative; however, it can ensure the robustness of the operation of the supply chain effectively. This work was supported in part by National Nature Science Foundation of China under Grant No. 70572088 and Liaoning Province education department scientific research plan to subsidize project under Grant No. 05W178. Jiawang Xu, the Associate Professor of Shenyang Institute of Aeronautic Engineering. Ph.D. student major in management science and engineering, in the School of Business and Administration of Northeastern University (NEU). The main research field is supply chain management and E-commerce. Xiaoyuan Huang, the Professor and Doctor Supervisor of Northeastern University and the Superintendent of the Information Management and Decision Research Center in the School of Business and Administration of NEU. The main research field is supply chain management and E-commerce, and about 200 papers of related field have been published. Nina Yan, Ph.D student major in management science and engineering, in the School of Business and Administration of Northeastern University. The main research field is supply chain management and E-commerce.