Time-dependent optimization of a multi-item uncertain supply chain network: A hybrid approximation algorithm

We consider the uncertain least cost shipping problem. The input is a multi‐item supply chain network with time‐evolving uncertain costs and capacities. Exploiting the operational law of uncertainty theory, a mathematical model of the problem is established and the indeterminacy factors are tackled. We use the scaling idea together with transformation approach and uncertainty programming to develop a hybrid algorithm to optimize and obtain the uncertainty distribution of the total shipping cost. We analyze the practical performance of the algorithm and present an illustrative example.