Centralized Supply Chain Network Ddesign: Monopoly, Duopoly, and Ooligopoly Competitions under Uncertainty

Subject Areas : Executive Management

kaveh  Fahimi ¹ (Department of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran)
Seyed Mohammad  Seyed Hosseini ² (Department of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran)
Ahmad  Makui ³ (Department of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran)

Received: 2016-11-21 Accepted : 2017-10-29 Published : 2018-07-01

Keywords: Nash Equilibrium, Bi-level programming, Competitive supply chain network design, Fuzzy multi-level mixed integer programming,

Abstract :

This paper presents a competitive supply chain network design problem in which one, two, or three supply chains are planning to enter the price-dependent markets simultaneously in uncertain environments and decide to set the prices and shape their networks. The chains produce competitive products either identical or highly substitutable. Fuzzy multi-level mixed integer programming is used to model the competition modes, and then the models are converted into an integrated bi-level one to be solved, in which the inner part sets the prices in dynamic competition and the outer part shapes the network cooperatively.Finally, a real-world problem is investigatedto illustrate how the bi-level model works and discuss how price, market share, total income, and supply chain network behave with respect to key marketing activities such as advertising, promotions, and brand loyalty.

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