Assurance of system service level robustness in complex supply chain networks

Abstract

Despite studies that consider service level rates of individual factories in a supply chain system, the interactions between connected factories and the impact of these interactions on the overall supply chain service level rate have been rarely studied. Moreover, due to uncertainties induced by various sources such as transportation delay and manufacturing processes variability, ensuring the robustness of system service level rate while considering these uncertainties in individual factories is a highly complex task. This paper studies uncertainty effect introduced by factory service level rates on the robustness of overall supply chain network performance, and presents a novel robust design optimization methodology to derive designs of factory service level rates in order to satisfy the service level rate requirement of the system and ensure its robustness. A case study with a multi-level multiple factories supply chain network is used to demonstrate the efficacy of the proposed methodology.