Abstract
This paper studies a supply chain network design model with price competition. The supply chain provides multiple products for a market area in multiple periods. The model considers the location of manufacturers and retailers and assumes a probabilistic customer behavior based on an attraction function depending on both the location and the quality of the retailers. We aim to design the supply chain under the capacity constraint and maximize the supply chain profit in the competitive environment. The problem is formulated as a mixed integer nonlinear programming model. To solve the problem, we propose two heuristic algorithms—Simulated Annealing Search (SA) and Particle Swarm Optimization (PSO)—and numerically demonstrate the effectiveness of the proposed algorithms. Through the sensitivity analysis, we give some management insights.
Highlights
With the development of economy globalization, enterprises are forced to align themselves with supply chains (SCs) rather than work as independent entities. e integration of different parties in the supply network and the control of material flow for the entire supply chain network play crucial roles in the performance and competitiveness of the supply chain
Mathematical Problems in Engineering researchers supposed that price and location decisions are at the same planning level and remain the same. ese assumptions do not apply to real supply chains, and the purpose of this article is to consider price decisions in the integrated model of Supply chain network design (SCND), which captures many aspects related to real applications
We developed a multiperiod, multiproduct, and multilayer supply chain network design (SCND) in the context of competition
Summary
With the development of economy globalization, enterprises are forced to align themselves with supply chains (SCs) rather than work as independent entities. e integration of different parties in the supply network and the control of material flow for the entire supply chain network play crucial roles in the performance and competitiveness of the supply chain. With the intensification of global market competition, designing an optimal supply chain network has become one of the important strategic goals of many enterprises [1]. Ere have been many studies in the area of the supply chain network design. E supply chain network design makes decisions at different supply chain tiers, from the strategic level (about the features of the facility, such as size, type, and location) to the tactical level (about transportation and inventory). Is paper studies the strategic and tactical decisions of the dynamic SCND issue with price sensitive demand. Ese assumptions do not apply to real supply chains, and the purpose of this article is to consider price decisions in the integrated model of SCND, which captures many aspects related to real applications Mathematical Problems in Engineering researchers supposed that price and location decisions are at the same planning level and remain the same. ese assumptions do not apply to real supply chains, and the purpose of this article is to consider price decisions in the integrated model of SCND, which captures many aspects related to real applications
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