Retailer-Supplier Flexible Commitments Contracts: A Robust Optimization Approach

@article{BenTal2005RetailerSupplierFC,
  title={Retailer-Supplier Flexible Commitments Contracts: A Robust Optimization Approach},
  author={Aharon Ben-Tal and Boaz Golany and Arkadi Nemirovski and Jean-Philippe Vial},
  journal={Manufacturing & Service Operations Management},
  year={2005},
  volume={7},
  pages={248-271}
}
W propose the use of robust optimization (RO) as a powerful methodology for multiperiod stochastic operations management problems. In particular, we study a two-echelon multiperiod supply chain problem, known as the retailer-supplier flexible commitment (RSFC) problem with uncertain demand that is only known to reside in some uncertainty set. We adopt a min-max criterion, whereby the cost function is minimized against the worst case demand occurrence. To solve the min-max RSFC problem we employ… CONTINUE READING

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