1. FYRIRLESTRAMARAÞON HR 2011 | RU LECTURE MARATHON 2011 Amir Azaron School of Science and Engineering Supply Chain Design under Uncertainty

2. www.hr.is Supply Chain A Supply Chain is a network of suppliers, manufacturing plants, warehouses and distribution channels. It is organized to acquire raw materials, convert these raw materials to finished products and distribute these products to customers.

3. www.hr.is Manufacturer Warehouse Wholesaler Consumer Supply Chain Network Supplier

4. www.hr.is Supply Chain Design Problem Decision Variables -Strategic decisions are dealing with the configuration of the supply chain or locations of facilities -Tactical decisions are dealing with the amount of products to be produced and flows of materials. Constraints -Flows (min on demand nodes, flow conservation on intermediate nodes, max on supply nodes). SCD Problem Objective -Simultaneously make Strategic and Tactical decisions to minimize the total costs. We should also make decision in an environment where most model parameters such as demands, capacities, etc., are uncertain.

5. www.hr.is