Taking various uncertainties and factors into account when large-scale systems are designed is an extremely complicated task and often challenging, such as a decision making in supply chain network design with transportation mode selection and warehouse location under fluctuated customer demand and transportation cost environment. For an optimal supply chain network design considering the supply chain risks, this paper proposes a mixed integer two-stage stochastic programming whose objective is the minimization of expected total operating cost of a supply chain network: a binary decision variable is introduced for transportation mode selection and warehouse location in the first stage, and product flow volume is determined in the second stage. With a set of different scenarios, we investigate the influence of uncertainty on supply chain design decisions and conduct computational experiments for three cases. Under any possible realizations of random data, experimental results prove effectiveness of optimal stochastic solutions proposed in achieving flexible supply chain network design. |