A confident supply chain network model using credibility measure under uncertainty condition

Abstract

Supply chain network (SCN) problem deals with selecting compatible and competent partners and description of materials, information and financial flow at different nodes in networks. Because of uncertain existence in supply chain networks, companies encounter risk in their business. The purpose of this paper is optimal designing of supply chain networks with multi-product and multi-customer by minimization per unit cost of supply and its variance in risky environments. An interactive fuzzy goal programming is used to achieve these objectives; simultaneously. A risk diagram is used as a method to take risk issues into account by considering the probability and consequence of risk events. Credibility measure is developed to give the assurance that risk consequences are lower than a given risk level with maximum possible confidence level. Uncertainties are considered in the model by fuzzy concept as risk elements. Examples are illustrated and numerical results indicate the effectiveness of the proposed model. Finally, as shown in results, the effects of disruption risks are mitigated in whole SCN with optimal orders allocation.