Use of a Benders decomposition method for solving a two-echelon multi-commodity supply chain network design problem with stochastic demands

In this paper، a design problem for a two-echelon multi-commodity supply chain network with stochastic demands is taken into account. This network consists of production plants، warehouses and retailer (or final customers) in a single period. The problem considers strategic decisions (including location and capacities of production plants and warehouses) and operational decisions (including the transportation of commodities from the production plant to the warehouses and from warehouses to customers). Additionally، in this study، the demand is assumed to be stochastic and the given problem is modeled using a scenario-based stochastic programming approach. Specifically a two-stage stochastic programming model is presented to solve this problem. Furthermore، a Benders decomposition method is proposed in order to efficiently solve this problem. Finally، the conclusion is presented.