Two-stage Supply Chain Model with Uncertain Demand

Abstract

Based on uncertainty theory, a two-stage supply chain model is presented, where the customers’ demands are characterized as uncertain variables. The objective is to minimize the combined costs incurred in the manufacturing and logistics phases. When these uncertain variables are linear, the objective function and constraints can be converted into crisp equivalents, then can be solved by traditional methods. An example is given to illustrate the model and the converting method