Open AccessRobust parameter design of inventory policy considering the risk preference of decision makers
Author(s) -
Ying Yang,
Lina Tang,
Yuanyuan Ma
Publication year - 2021
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1043/4/042029
Subject(s) - robustness (evolution) , supply chain , computer science , inventory management , robust optimization , mathematical optimization , dual (grammatical number) , supply chain risk management , inventory control , preference , risk analysis (engineering) , operations research , supply chain management , operations management , business , economics , service management , mathematics , microeconomics , marketing , gene , art , biochemistry , chemistry , literature
Aiming at reducing the risk in inventory management of supply chain system suffering from the influence of uncertainties, we propose a strategy to analyse the optimal inventory policy considering different risk preference of decision makers. The proposed method is a combination of the mean-conditional value-at-risk and the response surface model. From the perspective of robust optimization, the proposed method is adopted to solve the inventory control problems in a multi-echelon supply chain system, the effectiveness of the proposed method is verified in the simulation model. Furthermore, the comparison analysis between the proposed method and the dual-response surface method is conducted in this paper, and the comparison results shows the superiority of the proposed method in improving the robustness of supply chain system.