Dynamic supply chain network design with capacity planning and multi-period pricing

Mohammad Fattahi, Masoud Mahootchi, Kannan Govindan*, Seyed Mohammad Moattar Husseini

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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.

Original languageEnglish
JournalTransportation Research. Part E: Logistics and Transportation Review
Volume81
Pages (from-to)169-202
ISSN1366-5545
DOIs
Publication statusPublished - 2015

Fingerprint

capacity planning
Supply chains
pricing
heuristics
supply
Planning
price level
Simulated annealing
Linear programming
Costs
customer
programming
efficiency
planning
demand
Supply chain network
Heuristics
Network design
Pricing
Capacity planning

Keywords

  • Capacity planning
  • Dynamic supply chain network design
  • Linear relaxation-based heuristics
  • Multi-period pricing approach
  • Simulated annealing

Cite this

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title = "Dynamic supply chain network design with capacity planning and multi-period pricing",
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.",
keywords = "Capacity planning, Dynamic supply chain network design, Linear relaxation-based heuristics, Multi-period pricing approach, Simulated annealing",
author = "Mohammad Fattahi and Masoud Mahootchi and Kannan Govindan and {Moattar Husseini}, {Seyed Mohammad}",
year = "2015",
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language = "English",
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pages = "169--202",
journal = "Transportation Research. Part E: Logistics and Transportation Review",
issn = "1366-5545",
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}

Dynamic supply chain network design with capacity planning and multi-period pricing. / Fattahi, Mohammad; Mahootchi, Masoud; Govindan, Kannan; Moattar Husseini, Seyed Mohammad.

In: Transportation Research. Part E: Logistics and Transportation Review, Vol. 81, 2015, p. 169-202.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - Dynamic supply chain network design with capacity planning and multi-period pricing

AU - Fattahi, Mohammad

AU - Mahootchi, Masoud

AU - Govindan, Kannan

AU - Moattar Husseini, Seyed Mohammad

PY - 2015

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N2 - 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.

AB - 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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KW - Dynamic supply chain network design

KW - Linear relaxation-based heuristics

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