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

Author

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

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.

Suggested Citation

  • Fattahi, Mohammad & Mahootchi, Masoud & Govindan, Kannan & Moattar Husseini, Seyed Mohammad, 2015. "Dynamic supply chain network design with capacity planning and multi-period pricing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 169-202.
    • Handle: RePEc:eee:transe:v:81:y:2015:i:c:p:169-202
    DOI: 10.1016/j.tre.2015.06.007
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