Retail supply chain network design under operational and disruption risks

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Retail supply chain network design under operational and disruption risks

Salehi Sadghiani, N. / Torabi, S.A. / Sahebjamnia, N.

Highlights • Proposing two novel decision models to design a retail network. • Incorporating the robustness and resilience measures into the models. • Developing a new procedure for scenario elaboration and disruption profiling. • Providing a real case study and managerial insights.

Abstract Designing robust and resilient retail networks under operational and disruption risks can create substantial competitive advantage. In this paper, a deterministic multiple set-covering model is first proposed. Then, it is extended to a possibilistic scenario-based robust model by scenario generation and disruption profiling to design a robust and resilient retail network. The developed models are validated through randomly generated examples and a real case study in retailing. Numerical results demonstrate that designing retail chains without considering operational and disruption risks is really misleading. Also, multiple covering of retail stores as the measure of redundancy increases the network’s resilience significantly.