Redesign of a supply network by considering stochastic demand

This paper presents the problem of redesigning a supply network of large scale by considering variability of the demand. The central problematic takes root in determining strategic decisions of closing and adjusting of capacity of some network echelons and the tactical decisions concerning to the distribution channels used for transporting products. We have formulated a deterministic Mixed Integer Linear Programming Model (MILP) and a stochastic MILP model (SMILP) whose objective functions are the maximization of the EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization).