Optimization of Strategic Alliance Supply Chain Logistics Planning Under Uncertain Environment

Optimization of Strategic Alliance Supply Chain Logistics Planning Under Uncertain Environment 

Very often the market demand and the price of the finished products that the supply chain provides are uncertain. Even for a strategic alliance supply chain which has a dominant core business, what it can coordinate and control is only limited to the supply and demand, price and other related information between node enterprises inside the supply chain. In the face of rapidly changing external market, it is difficult to determine parameters like the quantity of demand and price exactly. But decision makers can derive a probability distribution ffinction of the changing within the market demand and the price of the product through the analysis of the historical data of demand and price. In other words, we can use random variables to describe such uncertain parameters as demand quantity and price. 

This chapter wiU discuss the supply chain logistics planning problem which takes the market price and market demand of finished products as random variables aimming at a three-level strategic alliance supply chain. 

This chapter is divided into four parts  

The first part briefly introduces the stochastic expected value programming theory. With the discussing on the expected value model which is a convex programming, Theorem 4.2 is put forward and proved. Furthermore we get the conclusion that if the expected value model is a convex programming and there exists an optimal solution, then any local optimal solution will be the global optimal solution. 

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