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Optimal strategy for production-distribution network of perishable products based on WCVaR
ZHANG Lei, YANG Chenghu, LU Meijin
Journal of Computer Applications    2015, 35 (2): 566-571.   DOI: 10.11772/j.issn.1001-9081.2015.02.0566
Abstract466)      PDF (1090KB)(369)       Save

According to partially known probability distribution of demand information on the production-distribution network of perishable products, WCVaR (Worst-Case Conditional Value-at-Risk) was introduced to measure the risk. On the basis of considering the effect of factors, such as production, logistics distribution, transportation path etc, on production cost, transportation cost, storage cost and loss of stockout, an optimization model with minimum WCVaR at certain service level was proposed. And then the best optimization strategy was realized by minimizing tail risk loss of production-distribution network. The numerical simulation results show that the WCVaR method can handle the uncertainty with more volatility and has more excellent stability, compared with the robust optimization method. When the demand obeys mixed distribution, the optimization problem of production-distribution network with uncertainty can be well solved with WCVaR optimization model.

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