IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v115y2018icp87-109.html
   My bibliography  Save this article

Designing a resilient competitive supply chain network under disruption risks: A real-world application

Author

Listed:
  • Ghavamifar, Ali
  • Makui, Ahmad
  • Taleizadeh, Ata Allah

Abstract

We address an intra-supply chain competition where a producer and resellers competing to achieve their goals, while taking into consideration the uncertainties and disruption risks. We utilize a bi-level multi-objective programming approach for designing a competitive supply chain network. A hybrid solution approach, combining the compromise programming and Benders decomposition methods, is developed to solve the model. Furthermore, an efficient inequality constraint is proposed to cope with the computational complexity of the bi-level model. To explore the practical application of the model, a real-world case example is discussed. Finally, the scalability of the solution approach is illustrated for large-scale problems.

Suggested Citation

  • Ghavamifar, Ali & Makui, Ahmad & Taleizadeh, Ata Allah, 2018. "Designing a resilient competitive supply chain network under disruption risks: A real-world application," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 115(C), pages 87-109.
    • Handle: RePEc:eee:transe:v:115:y:2018:i:c:p:87-109
    DOI: 10.1016/j.tre.2018.04.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554517304489
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2018.04.014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Rezapour, Shabnam & Farahani, Reza Zanjirani & Dullaert, Wout & De Borger, Bruno, 2014. "Designing a new supply chain for competition against an existing supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 124-140.
    2. Salehi Sadghiani, N. & Torabi, S.A. & Sahebjamnia, N., 2015. "Retail supply chain network design under operational and disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 95-114.
    3. Zhang, Ying & Snyder, Lawrence V. & Ralphs, Ted K. & Xue, Zhaojie, 2016. "The competitive facility location problem under disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 453-473.
    4. Tang, Christopher S. & Davarzani, Hoda & Sarkis, Joseph, 2015. "Quantitative models for managing supply chain risks: A reviewAuthor-Name: Fahimnia, Behnam," European Journal of Operational Research, Elsevier, vol. 247(1), pages 1-15.
    5. Konur, Dinçer & Geunes, Joseph, 2016. "Supplier wholesale pricing for a retail chain: Implications of centralized vs. decentralized retailing and procurement under quantity competition," Omega, Elsevier, vol. 65(C), pages 98-110.
    6. Nagurney, Anna, 2006. "On the relationship between supply chain and transportation network equilibria: A supernetwork equivalence with computations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(4), pages 293-316, July.
    7. Fernando Bernstein & Awi Federgruen, 2004. "A General Equilibrium Model for Industries with Price and Service Competition," Operations Research, INFORMS, vol. 52(6), pages 868-886, December.
    8. Keyvanshokooh, Esmaeil & Ryan, Sarah M. & Kabir, Elnaz, 2016. "Hybrid robust and stochastic optimization for closed-loop supply chain network design using accelerated Benders decomposition," European Journal of Operational Research, Elsevier, vol. 249(1), pages 76-92.
    9. Aboolian, Robert & Sun, Yi & Koehler, Gary J., 2009. "A location-allocation problem for a web services provider in a competitive market," European Journal of Operational Research, Elsevier, vol. 194(1), pages 64-77, April.
    10. Rezapour, Shabnam & Allen, Janet K. & Mistree, Farrokh, 2015. "Uncertainty propagation in a supply chain or supply network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 73(C), pages 185-206.
    11. Baghalian, Atefeh & Rezapour, Shabnam & Farahani, Reza Zanjirani, 2013. "Robust supply chain network design with service level against disruptions and demand uncertainties: A real-life case," European Journal of Operational Research, Elsevier, vol. 227(1), pages 199-215.
    12. Benjamin R. Tukamuhabwa & Mark Stevenson & Jerry Busby & Marta Zorzini, 2015. "Supply chain resilience: definition, review and theoretical foundations for further study," International Journal of Production Research, Taylor & Francis Journals, vol. 53(18), pages 5592-5623, September.
    13. Fernandez, Pascual & Pelegrin, Blas & Garcia Perez, Maria Dolores & Peeters, Peter H., 2007. "A discrete long-term location-price problem under the assumption of discriminatory pricing: Formulations and parametric analysis," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1050-1062, June.
    14. Fahimnia, Behnam & Jabbarzadeh, Armin, 2016. "Marrying supply chain sustainability and resilience: A match made in heaven," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 306-324.
    15. Buechel, Berno & Roehl, Nils, 2015. "Robust equilibria in location games," European Journal of Operational Research, Elsevier, vol. 240(2), pages 505-517.
    16. Zeynep Gümüş & Christodoulos Floudas, 2005. "Global optimization of mixed-integer bilevel programming problems," Computational Management Science, Springer, vol. 2(3), pages 181-212, July.
    17. Brian Tomlin, 2006. "On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks," Management Science, INFORMS, vol. 52(5), pages 639-657, May.
    18. Nader Azad & Georgios Saharidis & Hamid Davoudpour & Hooman Malekly & Seyed Yektamaram, 2013. "Strategies for protecting supply chain networks against facility and transportation disruptions: an improved Benders decomposition approach," Annals of Operations Research, Springer, vol. 210(1), pages 125-163, November.
    19. Nagurney, Anna & Toyasaki, Fuminori, 2005. "Reverse supply chain management and electronic waste recycling: a multitiered network equilibrium framework for e-cycling," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(1), pages 1-28, January.
    20. Peng, Peng & Snyder, Lawrence V. & Lim, Andrew & Liu, Zuli, 2011. "Reliable logistics networks design with facility disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 45(8), pages 1190-1211, September.
    21. Hasani, Aliakbar & Khosrojerdi, Amirhossein, 2016. "Robust global supply chain network design under disruption and uncertainty considering resilience strategies: A parallel memetic algorithm for a real-life case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 20-52.
    22. René Henrion & Christian Küchler & Werner Römisch, 2009. "Scenario reduction in stochastic programming with respect to discrepancy distances," Computational Optimization and Applications, Springer, vol. 43(1), pages 67-93, May.
    23. Kevin B. Hendricks & Vinod R. Singhal, 2005. "Association Between Supply Chain Glitches and Operating Performance," Management Science, INFORMS, vol. 51(5), pages 695-711, May.
    24. Kress, Dominik & Pesch, Erwin, 2012. "Sequential competitive location on networks," European Journal of Operational Research, Elsevier, vol. 217(3), pages 483-499.
    25. Scott Kolodziej & Pedro Castro & Ignacio Grossmann, 2013. "Global optimization of bilinear programs with a multiparametric disaggregation technique," Journal of Global Optimization, Springer, vol. 57(4), pages 1039-1063, December.
    26. Bibhas Chandra Giri & Sudarshan Bardhan, 2015. "Coordinating a supply chain under uncertain demand and random yield in presence of supply disruption," International Journal of Production Research, Taylor & Francis Journals, vol. 53(16), pages 5070-5084, August.
    27. Lawrence V. Snyder & Mark S. Daskin, 2005. "Reliability Models for Facility Location: The Expected Failure Cost Case," Transportation Science, INFORMS, vol. 39(3), pages 400-416, August.
    28. Zhang, Ding, 2006. "A network economic model for supply chain versus supply chain competition," Omega, Elsevier, vol. 34(3), pages 283-295, June.
    29. Anderson, Edward J. & Bao, Yong, 2010. "Price competition with integrated and decentralized supply chains," European Journal of Operational Research, Elsevier, vol. 200(1), pages 227-234, January.
    30. Fernando Bernstein & Awi Federgruen, 2004. "Dynamic inventory and pricing models for competing retailers," Naval Research Logistics (NRL), John Wiley & Sons, vol. 51(2), pages 258-274, March.
    31. Nagurney, Anna, 2010. "Supply chain network design under profit maximization and oligopolistic competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(3), pages 281-294, May.
    32. Taleizadeh, Ata Allah & Cárdenas-Barrón, Leopoldo Eduardo & Mohammadi, Babak, 2014. "A deterministic multi product single machine EPQ model with backordering, scraped products, rework and interruption in manufacturing process," International Journal of Production Economics, Elsevier, vol. 150(C), pages 9-27.
    33. S. Panda & S. Saha & M. Basu, 2013. "Optimal pricing and lot-sizing for perishable inventory with price and time dependent ramp-type demand," International Journal of Systems Science, Taylor & Francis Journals, vol. 44(1), pages 127-138.
    34. Wen, Xiaoqin & Xu, Chen & Hu, Qiying, 2016. "Dynamic capacity management with uncertain demand and dynamic price," International Journal of Production Economics, Elsevier, vol. 175(C), pages 121-131.
    35. Ben-Ayed, Omar & Boyce, David E. & Blair, Charles E., 1988. "A general bilevel linear programming formulation of the network design problem," Transportation Research Part B: Methodological, Elsevier, vol. 22(4), pages 311-318, August.
    36. Jonathan F. Bard & James T. Moore, 1992. "An algorithm for the discrete bilevel programming problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 39(3), pages 419-435, April.
    37. Liu, Mengqi & Cao, Erbao & Salifou, Coulibaly Kigbajah, 2016. "Pricing strategies of a dual-channel supply chain with risk aversion," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 108-120.
    38. Farahani, Reza Zanjirani & Rezapour, Shabnam & Drezner, Tammy & Fallah, Samira, 2014. "Competitive supply chain network design: An overview of classifications, models, solution techniques and applications," Omega, Elsevier, vol. 45(C), pages 92-118.
    39. Sazvar, Z. & Mirzapour Al-e-hashem, S.M.J. & Baboli, A. & Akbari Jokar, M.R., 2014. "A bi-objective stochastic programming model for a centralized green supply chain with deteriorating products," International Journal of Production Economics, Elsevier, vol. 150(C), pages 140-154.
    40. S Rezapour & R Zanjirani Farahani & T Drezner, 2011. "Strategic design of competing supply chain networks for inelastic demand," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(10), pages 1784-1795, October.
    41. Pranab Majumder & Ashok Srinivasan, 2008. "Leadership and Competition in Network Supply Chains," Management Science, INFORMS, vol. 54(6), pages 1189-1204, June.
    42. V. G. Narayanan & Ananth Raman & Jasjit Singh, 2005. "Agency Costs in a Supply Chain with Demand Uncertainty and Price Competition," Management Science, INFORMS, vol. 51(1), pages 120-132, January.
    43. S Rezapour & R Zanjirani Farahani & T Drezner, 2011. "Strategic design of competing supply chain networks for inelastic demand," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(10), pages 1784-1795, October.
    44. James T. Moore & Jonathan F. Bard, 1990. "The Mixed Integer Linear Bilevel Programming Problem," Operations Research, INFORMS, vol. 38(5), pages 911-921, October.
    45. Jabbarzadeh, Armin & Fahimnia, Behnam & Sheu, Jiuh-Biing & Moghadam, Hani Shahmoradi, 2016. "Designing a supply chain resilient to major disruptions and supply/demand interruptions," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 121-149.
    46. Pishvaee, M.S. & Razmi, J. & Torabi, S.A., 2014. "An accelerated Benders decomposition algorithm for sustainable supply chain network design under uncertainty: A case study of medical needle and syringe supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 14-38.
    47. Hamid Farvaresh & Mohammad Sepehri, 2013. "A Branch and Bound Algorithm for Bi-level Discrete Network Design Problem," Networks and Spatial Economics, Springer, vol. 13(1), pages 67-106, March.
    48. Rezapour, Shabnam & Farahani, Reza Zanjirani & Pourakbar, Morteza, 2017. "Resilient supply chain network design under competition: A case study," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1017-1035.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Govindan, Kannan & Gholizadeh, Hadi, 2021. "Robust network design for sustainable-resilient reverse logistics network using big data: A case study of end-of-life vehicles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    2. Fang, Chih-Chiang, 2020. "Optimal price and warranty decision for durable products in a competitive duopoly market," Reliability Engineering and System Safety, Elsevier, vol. 203(C).
    3. Fakheri, Sajjad & Bahrami-Bidoni, Zeynab & Makui, Ahmad & Pishvaee, Mir Saman & Santibanez Gonzalez, Ernesto DR., 2022. "A sustainable competitive supply chain network design for a green product under uncertainty: A case study of Iranian leather industry," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    4. Fartaj, Seyedamir-Reza & Kabir, Golam & Eghujovbo, Victor & Ali, Syed Mithun & Paul, Sanjoy Kumar, 2020. "Modeling transportation disruptions in the supply chain of automotive parts manufacturing company," International Journal of Production Economics, Elsevier, vol. 222(C).
    5. Akbarpour, Mina & Ali Torabi, S. & Ghavamifar, Ali, 2020. "Designing an integrated pharmaceutical relief chain network under demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    6. Ata Allah Taleizadeh & Ali Ghavamifar & Amir Khosrojerdi, 2022. "Resilient network design of two supply chains under price competition: game theoretic and decomposition algorithm approach," Operational Research, Springer, vol. 22(1), pages 825-857, March.
    7. Maureen S. Golan & Laura H. Jernegan & Igor Linkov, 2020. "Trends and applications of resilience analytics in supply chain modeling: systematic literature review in the context of the COVID-19 pandemic," Environment Systems and Decisions, Springer, vol. 40(2), pages 222-243, June.
    8. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    9. Maheswar Singh Mahapatra & Pravash Chandra Pradhan & J. K. Jha, 2022. "Sourcing decisions with order allocation under supply disruption risk considering quantitative and qualitative criteria," Operational Research, Springer, vol. 22(4), pages 3291-3333, September.
    10. Gital, Yeşim & Bilgen, Bilge, 2024. "Resilient strategies for managing supply and facility disruptions in a biomass supply chain," Applied Energy, Elsevier, vol. 372(C).
    11. Barenji, Ali Vatankhah & Wang, W.M. & Li, Zhi & Guerra-Zubiaga, David A., 2019. "Intelligent E-commerce logistics platform using hybrid agent based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 15-31.
    12. Yavari, Mohammad & Bohreghi, Iman Mohammadi, 2025. "Developing a green-resilient power network and supply chain: Integrating renewable and traditional energy sources in the face of disruptions," Applied Energy, Elsevier, vol. 377(PC).
    13. Goldbeck, Nils & Angeloudis, Panagiotis & Ochieng, Washington, 2020. "Optimal supply chain resilience with consideration of failure propagation and repair logistics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    14. Vahid Nazari-Ghanbarloo & Ali Ghodratnama, 2021. "Optimizing a robust tri-objective multi-period reliable supply chain network considering queuing system and operational and disruption risks," Operational Research, Springer, vol. 21(3), pages 1963-2020, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ata Allah Taleizadeh & Ali Ghavamifar & Amir Khosrojerdi, 2022. "Resilient network design of two supply chains under price competition: game theoretic and decomposition algorithm approach," Operational Research, Springer, vol. 22(1), pages 825-857, March.
    2. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    3. Rezapour, Shabnam & Farahani, Reza Zanjirani & Dullaert, Wout & De Borger, Bruno, 2014. "Designing a new supply chain for competition against an existing supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 124-140.
    4. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov & Marina Ivanova, 2017. "Literature review on disruption recovery in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 55(20), pages 6158-6174, October.
    5. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry & Zennaro, Ilenia, 2021. "Costs of resilience and disruptions in supply chain network design models: A review and future research directions," International Journal of Production Economics, Elsevier, vol. 235(C).
    6. Rezapour, Shabnam & Srinivasan, Ramakrishnan & Tew, Jeffrey & Allen, Janet K. & Mistree, Farrokh, 2018. "Correlation between strategic and operational risk mitigation strategies in supply networks," International Journal of Production Economics, Elsevier, vol. 201(C), pages 225-248.
    7. Nayeri, Sina & Sazvar, Zeinab & Heydari, Jafar, 2022. "A global-responsive supply chain considering sustainability and resiliency: Application in the medical devices industry," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    8. Azad, Nader & Hassini, Elkafi, 2019. "Recovery strategies from major supply disruptions in single and multiple sourcing networks," European Journal of Operational Research, Elsevier, vol. 275(2), pages 481-501.
    9. Rezapour, Shabnam & Farahani, Reza Zanjirani & Pourakbar, Morteza, 2017. "Resilient supply chain network design under competition: A case study," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1017-1035.
    10. Gholami-Zanjani, Seyed Mohammad & Klibi, Walid & Jabalameli, Mohammad Saeed & Pishvaee, Mir Saman, 2021. "The design of resilient food supply chain networks prone to epidemic disruptions," International Journal of Production Economics, Elsevier, vol. 233(C).
    11. Alikhani, Reza & Torabi, S.Ali & Altay, Nezih, 2021. "Retail supply chain network design with concurrent resilience capabilities," International Journal of Production Economics, Elsevier, vol. 234(C).
    12. Hosseini, Seyedmohsen & Ivanov, Dmitry & Dolgui, Alexandre, 2019. "Review of quantitative methods for supply chain resilience analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 285-307.
    13. Rezapour, Shabnam & Hassani, Ashkan & Farahani, Reza Zanjirani, 2015. "Concurrent design of product family and supply chain network considering quality and price," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 18-35.
    14. Fattahi, Mohammad & Govindan, Kannan & Keyvanshokooh, Esmaeil, 2017. "Responsive and resilient supply chain network design under operational and disruption risks with delivery lead-time sensitive customers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 176-200.
    15. Fakheri, Sajjad & Bahrami-Bidoni, Zeynab & Makui, Ahmad & Pishvaee, Mir Saman & Santibanez Gonzalez, Ernesto DR., 2022. "A sustainable competitive supply chain network design for a green product under uncertainty: A case study of Iranian leather industry," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    16. Goldbeck, Nils & Angeloudis, Panagiotis & Ochieng, Washington, 2020. "Optimal supply chain resilience with consideration of failure propagation and repair logistics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    17. Yavari, Mohammad & Bohreghi, Iman Mohammadi, 2025. "Developing a green-resilient power network and supply chain: Integrating renewable and traditional energy sources in the face of disruptions," Applied Energy, Elsevier, vol. 377(PC).
    18. Alikhani, Reza & Ranjbar, Amirhossein & Jamali, Amir & Torabi, S. Ali & Zobel, Christopher W., 2023. "Towards increasing synergistic effects of resilience strategies in supply chain network design," Omega, Elsevier, vol. 116(C).
    19. Fahimnia, Behnam & Jabbarzadeh, Armin, 2016. "Marrying supply chain sustainability and resilience: A match made in heaven," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 306-324.
    20. Fahimnia, Behnam & Jabbarzadeh, Armin & Sarkis, Joseph, 2018. "Greening versus resilience: A supply chain design perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 129-148.

    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:eee:transe:v:115:y:2018:i:c:p:87-109. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    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.