Title
Designing a new supply chain for competition against an existing supply chain Designing a new supply chain for competition against an existing supply chain
Author
Faculty/Department
Faculty of Applied Economics
Institute for Transport en Maritime Management (ITMMA)
Publication type
article
Publication
Exeter ,
Subject
Economics
Mathematics
Source (journal)
Transportation research: part E: logistics and transportation review. - Exeter
Volume/pages
67(2014) , p. 124-140
ISSN
1366-5545
ISI
000337863100008
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
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. Crown Copyright (C) 2014 Published by Elsevier Ltd. All rights reserved.
E-info
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