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

Document Type: Original Manuscript

Authors

1 Department of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran

2 Department of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran

10.22094/joie.2017.685.1439

Abstract

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.

Graphical Abstract

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

Highlights

  • One, two, or three supply chains decide to shape their networks simultaneously in the centralized mode.
  • The problems are converted into a bi-level model.
  • Possibilistic chance-constrained programming is used to cope with the uncertainty.
  • SCs shape their networks in a cooperative competition.

Keywords

Main Subjects


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