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

S. Rezapour, R.Z. Farahani, W.E.H. Dullaert, B. de Borger

Research output: Contribution to JournalArticleAcademicpeer-review

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. © 2014.
Original languageEnglish
Pages (from-to)124-140
JournalTransportation Research Part E: Logistics and Transportation Review
Volume67
Issue numberJuly
DOIs
Publication statusPublished - 2014

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Supply chains
supply
Dynamic models
customer
Costs
demand
costs
Supply chain
Facility location
Metaheuristics
Customer behavior
Retailers
Dynamic competition

Cite this

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Designing a new supply chain for competition against an existing supply chain. / Rezapour, S.; Farahani, R.Z.; Dullaert, W.E.H.; de Borger, B.

In: Transportation Research Part E: Logistics and Transportation Review, Vol. 67, No. July, 2014, p. 124-140.

Research output: Contribution to JournalArticleAcademicpeer-review

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T1 - Designing a new supply chain for competition against an existing supply chain

AU - Rezapour, S.

AU - Farahani, R.Z.

AU - Dullaert, W.E.H.

AU - de Borger, B.

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Y1 - 2014

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AB - 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. © 2014.

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DO - 10.1016/j.tre.2014.04.005

M3 - Article

VL - 67

SP - 124

EP - 140

JO - Transportation Research Part E: Logistics and Transportation Review

JF - Transportation Research Part E: Logistics and Transportation Review

SN - 1366-5545

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