Optimal logistic planning in robust Supply Chain Management

Supply Chain Management (SCM) is now an important strategy for companies to gain competitiveness. However, the cost is still the key factor to face. This paper proposes a novel approach to create an optimal logistic plan in SCM with failures such that the required total capacity for logistics is minimum while the reliability retains the highest. Since the globalized economics changes very fast, the logistic dynamics for each firm´s supply chain is also versatile. Our approach can provide companies a helpful toolkit to manage such situation while keeping the ability to predict the performance of SCM. A numerical example is presented for illustration of the proposed method.