Integrated Optimization of Procurement and Distribution Based on Risk Attitude of Decision-Makers

Supply chain risks derive from uncertainty of the supply chain. This paper studies the optimization on integrated decision of procurement and distribution based on risk attitude of decision-makers in an uncertain environment of cost, quality, delivery, demand and supply. We model a two-echelon supply chain consisting of suppliers, DCs and retailers and convert fuzzy chance constraints into crisp equivalents by applying credibility theory of fuzzy events. A numerical example is given to show the impacts of decision-makers' attitude toward risks.