Designing an Agile Supply Chain Network in Terms of Price Dynamics With a Focus on Transportation Planing

Document Type : Research Paper

Authors

1 Logistic Expert

2 Department of Industrial Engineering, Tehran North Branch, Tehran, Iran

Abstract

This paper deals with the problem of agile supply chain network design in terms of capacity constraints as well as the dependence of customer demand on product price. The purpose of the research is to design an agile supply chain by taking into  consideration integrated production, distribution, routing and pricing decisions with special emphasis on transportation planning. Distribution and production planning is  carried out according to capacity constraints and different parameters related to transportation. The transportation system is assumed to consist of various types of vehicles with different capacities and transport costs. A nonlinear mixed-integer
programming model is developed with the objective of maximizing the overall supply chain profit. The results of solving the numerical examples indicate that there is a linear relationship between co-production planning and distribution and reducing total supply chain costs. Also, retailers’ demand is reduced with increase in prices, Thus, pricing can be used as leverage in production, inventory and distribution planning, by taking into account the capacity constraints in different parts of the supply chain.

Keywords

References

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History

  • Receive Date: 09 November 2019
  • Revise Date: 09 March 2020
  • Accept Date: 27 March 2020

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