Production and raw material ordering management for a manufacturing supply chain with uncertainties

This paper considers the problem of joint production and raw material ordering management in a manufacturing supply chain with uncertain supply (due to information quality) and uncertain production (due to product quality). Several strategies are presented to improve the supply chain performance. Simulation method is used to compare the strategies with a case company´s existing practice using realistic data. The scenario analysis demonstrates that relative merits exist for different strategies. It appears that safety production and safety ordering are necessary as the level of uncertainties increases.