Dynamic supply chain network design with capacity planning and multi-period pricing |
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| Institution: | 1. Centro de Matemática e Aplicações (CMA), Faculdade de Ciências e Tecnologia (FCT), Universidade Nova de Lisboa (UNL), P 2829-516, Caparica, Portugal;2. Departamento de Matemática, Faculdade de Ciências e Tecnologia (FCT), Universidade Nova de Lisboa (UNL), P 2829-516, Caparica, Portugal;3. Business School, Saarland University of Applied Sciences, D 66123, Saarbrücken, Germany;1. Department of Industrial Engineering and Management, Shahrood University of Technology, Shahrood, Iran;2. Center for Sustainable Supply Chain Engineering, Department of Technology and Innovation, University of Southern Denmark, Campusvej 55, Odense, Denmark;3. Department of Industrial and Operations Engineering, The University of Michigan, Ann Arbor, MI, USA |
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| 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. |
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| Keywords: | Dynamic supply chain network design Capacity planning Multi-period pricing approach Simulated annealing Linear relaxation-based heuristics |
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