Designing a market basket to mitigate supply risks

Volatility in competitive businesses has increased the uncertainty and ambiguity of decision-makings. Uncertainties are known as risks in the literature reviews. The present study developed the model proposed by Kirilmaz and Erol to mitigate risks and ambiguity in decision makings in the green supply chain. An initial multiobjective procurement plan was developed using a robust planning model considering costs, purchase discounts, carbon emissions and uncertainty as the first priority. The paper applies a scenario-based approach to consider an uncertain customer demand in different scenarios. The scenario-based model ensured that regret whereas scenarios are not probability. Moving toward the green supply chain decreases the costs that exert negative and devastating effects on the environment. As the second priority, risk was ultimately incorporated into this plan. A hypothetical data-set was examined and a cost analysis performed to evaluate the quality of the obtained solutions and the performance of the proposed model.