Network of Supply Chain in Uncertainty Condition and Disturbances of Suppliers (Case Study: The Steel Supply Chain)

Abstract

This paper designs a three-level green chain network in uncertainty condition and random disturbances of suppliers. The under evaluated supply chain is the steel supply chain which has three levels of iron ore suppliers, producers of three products of billet, bloom and slab (steel products) and consumers. In this problem, it is assumed that the customers' demands, supply capacity of suppliers and capacity of production and casting have uncertainty. The Robust Optimization Approach has been used for modeling uncertainty of parameters. Also in this network, it is assumed that supplier can be stationary or non-stationary against random disturbances, purchase cost from a stationary supplier is more but this supplier can supplies orders of producers completely both in normal and disturbance conditions. In the under evaluated question, two functions of cost of whole network and total environmental effects are minimized. A solving method has been used which has been founded based on fuzzy concepts to combine two objective functions. At the end, after solving problem for the steel supply chain, operation of the proposed robust model has been evaluated against the deterministic model.