Benders Decomposition Algorithm for A Build-to-Order Supply Chain Problem Under Uncertainty

Abstract

Customization is increasing so build-to-order systems are given more attention to researchers and practitioners. This paper presents a new build-to-order supply chain model with multiple objectives that minimize the total cost and lead time, and maximize the quality level. The model is first formulated in a deterministic condition, and then investigated the uncertainty of the cost and quality by the stochastic programming based on the scenario. The return policy and outsourcing are the new issues in a build-to-order supply chain by considering the cost and inventory. A Benders decomposition algorithm is used to solve and validate the model. Finally, the related results are analyzed and compared with the results obtained by CPLEX for deterministic and stochastic models.

Keywords

• build-to-order
• multi-objective supply chain
• benders decomposition.