Although supply chains disruptions rarely occur, their negative effects are prolonged and severe. In this paper, we propose a reliable capacitated supply chain network design (RSCND) model by considering random disruptions in both distribution centers and suppliers. The proposed model determines the optimal location of distribution centers (DC) with the highest reliability, the best plan to assign customers to opened DCs and assigns opened DCs to suitable suppliers with lowest transportation cost. In this study, random disruption occurs at the location, capacity of the distribution centers (DCs) and suppliers. It is assumed that a disrupted DC and a disrupted supplier may lose a portion of their capacities, and the rest of the disrupted DC & apos; s demand can be supplied by other DCs. In addition, we consider shortage in DCs, which can occur in either normal or disruption conditions and DCs, can support each other in such circumstances. Unlike other studies in the extent of literature, we use new approach to model the reliability of DCs; we consider a range of reliability instead of using binary variables. In order to solve the proposed model for real-world instances, a Non-dominated Sorting Genetic Algorithm-II (NSGA-II) is applied. Preliminary results of testing the proposed model of this paper on several problems with different sizes provide seem to be promising.

One of the primary concerns on supply chain management is to handle risk components, properly. There are various reasons for having risk in supply chain such as natural disasters, unexpected incidents, etc. When a series of facilities are built and deployed, one or a number of them could probably fail at any time due to bad weather conditions, labor strikes, economic crises, sabotage or terrorist attacks and changes in ownership of the system. The objective of risk management is to reduce the effects of different domains to an acceptable level. To overcome the risk, we propose a reliable capacitated supply chain network design (RSCND) model by considering random disruptions risk in both distribution centers and suppliers. The proposed study of this paper considers three objective functions and the implementation is verified using some instance.