Designing a new supply chain for competition against an existing supply chain

Shabnam Rezapour, Reza Zanjirani Farahani, Wout Dullaert and Bruno De Borger

Transportation Research Part E: Logistics and Transportation Review, 2014, vol. 67, issue C, 124-140

Abstract: We develop a bi-level model for designing an entrant supply chain (SC) in the presence of a pre-existing competing SC where demand is elastic with respect to price and distance. The model assumes dynamic competition between the new and pre-existing SCs in retailers’ level and probabilistic customers’ behavior. Strategic facility location and flow decisions are made while considering inventory carrying costs incurred on the operational level. We formulate the problem and propose exact and metaheuristic algorithms to solve it. The model is solved using data from a real-life case and also randomly generated test problems to extract managerial insights.

Keywords: Supply chain management; Network design; Competition; Retailer; Heuristic algorithm (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (11)

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DOI: 10.1016/j.tre.2014.04.005

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