For the replacement of fossil fuel forestry biomass should help mitigating Green House Gas (GHG) emissions. However the supply of energy wood is challenging because of high supply costs and rapidly increasing demand. Considering the typical, heterogeneous structure of landownership, contractors and energy producers in Mid-Europe, supply network optimization becomes of major importance. Mathemat...

In this paper, we develop a generalized network optimization model for the complex supply chain of human blood, which is a life-saving, perishable product. In particular, we consider a regionalized blood banking system consisting of collection sites, testing and processing facilities, storage facilities, distribution centers, as well as points of demand, which, typically, include hospitals. Our...

The U.S. Department of Agriculture (USDA) currently uses a bidding system to determine carriers and suppliers that would partner in providing food aid annually in response to global emergencies and famine. We mimic the USDA approach via a robust optimization model featuring box and ellipsoid uncertainty frameworks to account for uncertainties in demand, supplier and carrier bid prices. Through ...

This paper considers the coordination problem of one-retailer one-supplier supply chains with stochastic demand and demand disruption. Adopted optimization methods and numerical experiments, we evaluate the benefits of the ABD contracts with and without demand disruption, and characterize the optimal discount price that maximizes the supplier’s expected profit under such circumstance. The resul...

We propose a general methodology based on robust optimization to address the problem of optimally controlling a supply chain subject to stochastic demand in discrete time. The attractive features of the proposed approach are: (a) It incorporates a wide variety of phenomena, including demands that are not identically distributed over time and capacity on the echelons and links; (b) it uses very ...