Design of Transportation Networks Under Uncertainties By the P-Graph Framework

Rapidly changing prices and taxes, as well as emerging new products and technologies, demand that the design of any company’s supply chain has to be frequently revised to stay competitive. Mathematical modeling and optimization provide solid basis for evaluating alternative designs and scenarios, reducing cost, improving efficiency, and adapting to changing requirements.

The proposed methodology is based on the combinatorial foundations of algorithmic process synthesis or more specifically on the P-graph framework. With this method it is possible to identify which is the least sensitive of all the feasible structures, if the cost or the available flow of the resources, the cost of the activity, and the required flow of the product can be stochastic.

A biodiesel supply network involving two type of transportation, such as barge and railway, serves as an illustrative example. A novel algorithm generates the mathematical model and alternative solutions to increase reliability of supply scenarios.