Algorithm for determining the optimal flow in Supply Chains, considering multi-criteria conditions and stochastic processes

Abstract

One of the main criteria for planning and evaluating supply chains is the indicator of the flow capacity, which affects the structure of the supply graph, terms of supply, risks, opportunities and the need to differentiate supply channels. The paper analyse an algorithm for calculating the optimal value of the flow in supply chains, taking into account the requirements and expectations of key stakeholders in the supply process. The algorithm provides for finding a balance between "requirements" and "expectations" by mathematical modelling of a multicriteria problem for each side of the supply process. It proposed to use the obtained parameters for calculating multicriteria problems as "input" data for an iterative algorithm for finding the optimal flow value. The proposed model allows one to take into account probabilistic fluctuations in processes by using stochastic programming. The model allows the parties to the procurement process to consider alternative proposals before the formation of contractual obligations, that is, based on residual capacity after choosing the best alternative.