Dynamic supply chain network design with capacity planning and multi-period pricing

Mohammad Fattahi, Masoud Mahootchi, Kannan Govindan and Seyed Mohammad Moattar Husseini

Transportation Research Part E: Logistics and Transportation Review, 2015, vol. 81, issue C, 169-202

Abstract: This paper addresses a new problem in designing and planning a multi-echelon and multi-product supply chain network over a multi-period horizon in which customer zones have price-sensitive demands. Based on price-demand relationships, a generic method is presented to obtain price levels for products and then, a mixed-integer linear programming model is developed. Due to the problem intractability, a simulated annealing algorithm that uses some developed linear relaxation-based heuristics for capacity planning and pricing is presented. Numerical results demonstrate the significance of the model as well as the efficiency of the solution algorithm and linear relaxation-based heuristics.

Keywords: Dynamic supply chain network design; Capacity planning; Multi-period pricing approach; Simulated annealing; Linear relaxation-based heuristics (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (18)

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DOI: 10.1016/j.tre.2015.06.007

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