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

Rezapour, S, Farahani, RZ, Dullaert, W et al. (2014). Designing a new supply chain for competition against an existing supply chain . 67 124-140. 10.1016/j.tre.2014.04.005

cited authors

  • Rezapour, S; Farahani, RZ; Dullaert, W; De Borger, B

authors

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.

publication date

  • January 1, 2014

Digital Object Identifier (DOI)

start page

  • 124

end page

  • 140

volume

  • 67