A Comparison of Robust Modeling Approaches to Cope with Uncertainty in Independent Terms, considering the Forest Supply Chain Case Study

Uncertainty plays a crucial role in strategic supply chain design. In this study, we explore robust approaches to model uncertainty when the non-deterministic parameters are placed in the independent term, on the right-hand side (RHS) of the constraints. We consider the "disjunctive adjustable column-wise robust optimization" (DACWRO), a disjunctive formulation introduced previously in our group, and compare it with the adjustable column-wise robust optimization (ACWRO) formulation, a specific technique for solving robust optimization problems when the original robust optimization approach may assume too-conservative results. Given that the proposed method is based on the generalized disjunctive programming (GDP) technique, it is a higher lever modelling approach that represents the discrete nature of the decision process. In addition, it provides alternative MILP representations that can be further tested and compared. The analysis assesses the computational performance and reformulation tightness of both approaches in the context of the forest supply chain design problem.