Research Project

ROBUST SUPPLY NETWORK PLANNING

Due to the long-term planning horizon of decisions regarding the design of supply networks, decisions are based on uncertain information, e.g., demand information. The robust supply network planning seeks a network that yields a satisfying solution for the decision maker, regardless of the realization of the uncertain parameters. Therefore, uncertainties need to be considered in mathematical models for supply network planning and the induced financial risk has to be accounted for in the objective function. Furthermore, adaptions of the network design to possible changes in the environment of a company should be incorporated. Such changes could include spatial shift in demand or in the cost structure. To enable a fast adaption, the concept of relocatable modular capacities is used. The production capacity of a facility is then split into modular capacities that can easily be shifted between production facilities. A robust plan for the purchase, relocation and selling of these modular capacities is necessary.

Field of Research