Management of financial and consumer satisfaction risks in supply chain design G. Guillén(++), F. D. Mele(++), M. Bagajewicz(+), A. Espuña(++), and L. Puigjaner(++)(#) (++)Universidad Politècnica de Catalunya, Chemical Engineering Department, ETSEIB, Diagonal 647, 08028 Barcelona, Spain; (+) University of Oklahoma. School of Chemical Engineering and Materials Science, 100 E. Boyd St., T-335, Norman, OK 73019, USA. On sabbatical leave at ETSEIB; (#) Corresponding author. Abstract In this article the design of a supply chain consisting of several production plants, warehouses and distribution centers is considered introducing uncertainty and using a two stage stochastic model. The model takes into account profit over the time horizon and considers consumer satisfaction. Financial risk and the risk of not meeting the consumer satisfaction are considered and managed at the design stage. The result of the model is a set of pareto optimal curves that can be used for decision making. 1. Introduction Supply Chains (SC), which started to be studied in the early 90s, include several decision variables: strategic, tactical and operational. Strategic decisions include the supply chain design, which consists of the determination of the optimal configuration of an entire SC network: number, location and capacity of plants, warehouses and distribution centers to be set up, the transportation links and the flows and production rates of materials. In this work, we present a two-stage stochastic model for SC design with management of financial and consumer satisfaction risks. The model is presented next. 2. Deterministic Model This model considers several production plants, warehouses and distribution centers. It is similar to previous SC models (Tsiakis et al., 2001). However, some modifications have been introduced. The NPV instead of the cost is used as objective function. In addition, the capacities of the plants/warehouses are considered in the determination of the capital investment and in the calculation of the operational associated costs. 2.1 Constraints • Mass balance: the steady state is supposed through the SC