| dc.description.abstract | This research delves deeply into the complexities of the Capacitated Supplier Selection
problem, with a specific focus on integrating the Total Quantity Discount policy and Activation
Costs in the procurement process. The study addresses uncertainties arising from Stochastic
prices and Stochastic demands, which are prevalent in real-world scenarios. To effectively
handle such uncertainties, we propose a two-stage Stochastic Programming formulation with
recourse. Our approach carefully considers both strategic and operational decisions, adapting
the general model and recourse actions to accommodate the stochastic nature of the problem.
By doing so, we can make robust and reliable supplier selection decisions in the face of
uncertainty. To validate the proposed approach, we conduct extensive experimentation on a
diverse set of instances. The results demonstrate the superiority of explicitly considering
uncertainty over traditional methods based on expected values. This provides valuable
managerial insights, enabling companies to make well-informed decisions in the procurement
process. However, dealing with stochastic elements introduces computational challenges. To
overcome this, we present a branch-and-cut solution framework, leveraging valid inequalities
and other acceleration mechanisms to efficiently handle a sufficiently large number of
scenarios | en_US |
