Study on Multi-Products Supply Chain Volume Flexibility Decision Model Related to Producing Under Demand Uncertainty

Considering the minimum expected total cost of supply chain and supply chain volume flexibility, the author established the multi-products supply chain's volume flexibility decision-making model related to producing under demand uncertainty in this paper. We got the function of the minimum expected total cost with respect to the volume flexibility level of supply chain. We presented the definition of the efficient frontiers of supply chain volume flexibility decision-making and explained its economic meanings. Furthermore, we researched its characteristics and proved the efficient frontiers have two characteristics: the monotone increasing and the convexity. Meanwhile, we introduced a kind of new criterion to confirm the optimal solution, which is minimizing the cost-flexibility coefficient. We established the optimal decision-making model, and obtained the optimal solution expression. At last, we proved the model and efficiency of decision in this paper through the numerical example.