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Underestimating supplier capacity, and their ability to deal with rapid ramp-ups in production, can have a similar knock-on effect on working conditions.
The simulation tests the robustness of the MIP solution for supplier capacity risk and demand risk.
Incorporating uncertainty of demand and supplier capacity into the optimization model results in a robust selection of suppliers.
The company noted in its blog post that announced the deal that "there is excess supplier capacity today" in the solar panel industry.
Inequality (8) ensures that the total raw materials transported from each available supplier to the manufacturers cannot exceed the supplier capacity.
In order to take into account the level of demands and maximum production capacities with single/multiple sourcing, in this new formulation we introduce supplier capacity constraints.
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This fact requires considering uncertainties of the environment such as customer demands and supplier capacities.
Hence, capacity allocation mechanisms are proposed, to deal with the gap between suppliers' capacities and customers' demands (Cachon and Lariviere 1999a, b).
This study has contributed to the body of existing green supply chain literature through addressing uncertainties of suppliers' capacities, plants' capacities, warehouses' capacities and demand for sustainable supply chain network design problem.
Constraints such as suppliers´ capacity, diversity of suppliers, suppliers´ cooperation, trust and commitment, tariffs, exchange rates and inventory were identified in different supplier tiers of the OEMs as the main factors influencing the observed volume and mix flexibilities.
Various aspects of energy security, such as diversification, lower dependency, supplier export capacity, minimizing the import cost, transport distance and political instability associated with each of the foreign natural gas suppliers, were incorporated in the decision-making model for a foreign natural gas import scheme for the years 2015 2020.
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