Centralized Supply Chain Network Ddesign: Monopoly, Duopoly, and Ooligopoly Competitions under Uncertainty

• Main Authors: kaveh Fahimi, Seyed Mohammad Seyed Hosseini, Ahmad Makui
• Format: Article
• Language: English
• Published: Islamic Azad University, Qazvin Branch 2018-07-01
• Series: Journal of Optimization in Industrial Engineering
• Subjects: Competitive supply chain network design; Fuzzy multi-level mixed integer programming; Bi-level programming; Nash equilibrium
• Online Access: http://www.qjie.ir/article_538017_18669b3a9b532bdcfa1fae50a9e1936b.pdf

This paper presents a competitive supply chain network design problem in which one, two, or three supply chains are planning to enter the price-dependent markets simultaneously in uncertain environments and decide to set the prices and shape their networks. The chains produce competitive products either identical or highly substitutable. Fuzzy multi-level mixed integer programming is used to model the competition modes, and then the models are converted into an integrated bi-level one to be solved, in which the inner part sets the prices in dynamic competition and the outer part shapes the network cooperatively.Finally, a real-world problem is investigatedto illustrate how the bi-level model works and discuss how price, market share, total income, and supply chain network behave with respect to key marketing activities such as advertising, promotions, and brand loyalty.