IDEAS home Printed from https://ideas.repec.org/a/ids/ijisen/v13y2013i1p56-72.html
   My bibliography  Save this article

Multi-objective optimisation for pricing and distribution in a supply chain with stochastic demands

Author

Listed:
  • M. Karimi-Nasab
  • D. Shishebori
  • S.G.R. Jalali-Naini

Abstract

In this research, a new multi-objective approach is proposed to determine the distribution policy for a wholesaler. The wholesaler distributes supplementary nutrition to a set of local distribution centres positioned around the wholesaler, geographically. Each local distribution centre has its own stochastic demand over planning periods. Also, for each local distribution centre, the demand has a normal distribution with estimated mean and variance for a planning period. The model illustrates the conflict of two partners' objectives: manager of the wholesaler aims to maximising the total profit of the wholesaler, and local distribution centres desire to maximise the minimum service level received from the wholesaler. The approach optimises selling price, carrying cost, batch size and services level of multi-items for each local distribution centre in every planning period. As the demands are stochastic input data, there exist different Pareto frontiers with corresponding probabilities that among them, we propose to find the frontier corresponding to expected demand volumes. This Pareto frontier is the most stable among other ones. Finally, the computational results in a real case data are analysed.

Suggested Citation

  • M. Karimi-Nasab & D. Shishebori & S.G.R. Jalali-Naini, 2013. "Multi-objective optimisation for pricing and distribution in a supply chain with stochastic demands," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 13(1), pages 56-72.
    • Handle: RePEc:ids:ijisen:v:13:y:2013:i:1:p:56-72
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=50545
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijisen:v:13:y:2013:i:1:p:56-72. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=188 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.