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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