Optimal Model for Manufacturer's Multi-Products Supply-Production-Distribution Process Based on CVaR

摘要

This paper presents the optimization model of manufacturer's supply-production-distribution process with the conditional value at risk (CVaR). By our model, we may get the optimal strategy of materials purchasing and the optimal strategy of production in a business cycle. Numerical experiments show that our model can help manufacturers purchase appropriate quantities of raw materials from several suppliers, produce appropriate quantities of products, and then sell the products to several retailers with appropriate price, as well as the evasion of risk of the uncertainty of demand.