Scenario aggregation for supply chain quantity-flexibility contract

作者：Kim Gitae^*; Wu Chih Hang

来源：International Journal of Systems Science, 2013, 44(11): 2166-2182.

DOI：10.1080/00207721.2012.702237

• supply chain management
• supply chain contract
• stochastic programming
• scenario aggregation
• progressive hedging method

In this research, we apply a scenario aggregation approach to solving the supply chain contract model formulated by two-stage stochastic programming problem. The supply chain contract can achieve the coordination between the buyer and the supplier. We formulate the stochastic programming model for a quantity-flexibility contract. The scenario aggregation method called the progressive hedging method is used to solve this problem. Experimental results show the convergence behaviour of the algorithm and the sensitivity of parameters.

• 出版日期2013-11-1