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Designing a new supply chain for competition against an existing supply chain

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  • Rezapour, Shabnam
  • Farahani, Reza Zanjirani
  • Dullaert, Wout
  • De Borger, Bruno

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.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:transe:v:67:y:2014:i:c:p:124-140
    DOI: 10.1016/j.tre.2014.04.005
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    References listed on IDEAS

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    3. Hafezalkotob, Ashkan, 2017. "Competition, cooperation, and coopetition of green supply chains under regulations on energy saving levels," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 228-250.
    4. repec:eee:joreco:v:26:y:2015:i:c:p:1-13 is not listed on IDEAS
    5. 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.
    6. repec:eee:transe:v:109:y:2018:i:c:p:99-114 is not listed on IDEAS
    7. 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.

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