Supply chain optimization under uncertainty

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Supply chains are networks of entities that include suppliers of raw material, production manufacturing units who convert the material into products, warehouses that store, and distribution centres that cover the flows of products from suppliers to retailers and customers. Modern industries strive to have the most optimized supply chain because it usually translates to a better performance for the company. ***Supply chain optimization implies optimization of three types of activities: (1) strategic design, (2) tactical planning and (3) operational execution, which are distinguished by managerial level, time horizon and uncertainty in the decision environment. ***Strategic design decisions establish and modify the resources available to the enterprise, such as manufacturing plants and warehouses. Tactical planning decisions imply developing timetables for planned production, maintenance, transportation, workforce, sales and the inventory levels that will optimally match high-quality production to sales. Operational control involves the detailed execution of short-term schedules by all parts of the organization in such a way as to achieve the profit and performance goals established by the plans. ***At each level, there are many kinds of uncertainties that create significant challenges for optimization. These uncertainties include machine failures, accidents, attacks, demands, raw material and price fluctuations. Our research program is part of a continuing effort aimed at developing effective decision-support tools to tackle important optimization problems encountered at the strategic design, tactical planning and operational execution of supply chains. The proposed research program will focus on the following projects: ***At the strategic level ***- Design of defence strategies to protect supply chain facilities (such as manufacturing plants and warehouses) against intentional attacks that can be performed by a malevolent agent. ***- Design of failure-prone manufacturing systems used in high-volume production, such as automotive, electronics, and wood industries. ***At the tactical level ***- Tactical planning under uncertainty considering integrated procurement, production, distribution, and sale planning. ***- Integrated planning of production, maintenance and quality. ***- Spare parts management from a third-party maintenance provider perspective. ***At the operational level: ***- Reactive planning under uncertainties in demand, supply quantities, raw material costs, machine failures, and price fluctuations. ***Efforts will be made to ensure the transfer of the results of the research program to industry. Considering the socio-economic importance of supply chains and the challenging scientific and practical problems encountered when dealing with uncertainties, the impact of this new research program could prove to be extremely significant.