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A competitive facility location problem using distributor Stackelberg game approach in multiple three-level supply chains

Author

Listed:
  • Maryam Esmaeili
  • Sara Gharegozlou Hamedani

Abstract

This paper studies a discrete facility location problem in two different supply chains including suppliers, distributors and customers. The current and new distribution firm act as the leader and the follower respectively in a Stackelberg game. The model considers the lead-time as a competitive factor between the new Distribution Centres (DCs) and the existing ones as well as optimising the location and number of to-be-established DCs in the new supply chain by minimising the total cost. The Branch and Bound as well as Genetic Algorithm (GA) are used for solving the model, and the results are compared with the situation that there is no competitor results show in case of competition; there is more possibility of lost sales ignoring the rival decision in making strategic decision of locating new DCs. While, when there is no other player, decisions are taken independently as the only possible option for consumers.

Suggested Citation

  • Maryam Esmaeili & Sara Gharegozlou Hamedani, 2022. "A competitive facility location problem using distributor Stackelberg game approach in multiple three-level supply chains," International Journal of Applied Management Science, Inderscience Enterprises Ltd, vol. 14(3), pages 205-220.
    • Handle: RePEc:ids:injams:v:14:y:2022:i:3:p:205-220
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