A bi-level programming model for decentralized manufacturer-distributer supply chain considering cooperative advertising

Abstract

Abstract. This paper studies a bi-level decentralized supply chain consisting of one manufacturer and one distributor. Along with global advertising, the manufacturer participates in part of local advertising expenditure incurred by the distributor. Bi-level programming is applied to model the relationship between the manufacturer and distributer under two power scenarios of Stackelberg game framework. In the rst scenario, we consider the manufacturer as the leader and in the latter, we allow the distributer to act as the dominant member of the supply chain. In order to tackle bi-level programming models, a meta-heuristic genetic algorithm with hierarchical structure is developed for each scenario and optimal policies for the members in terms of pricing, advertising, inventory, and demand allocation are determined. Finally, several computational experiments are conducted on the data obtained from an automotive spare parts supply chain to demonstrate the validity of the developed models and compare the bene ts of members as well as of the entire system.

A Combined Benders Decomposition and Lagrangian Relaxation Algorithm for Optimizing a Multi-Product, Multi-Level Omni-Channel Distribution System

“…The (4) respectively guarantee that the shipping flow of an item from distribution center i to delivery point j and from intermediary depot k to delivery point j is not less than available capacity in the distribution center. Constraints (5) and (6) ensure that the overall shipping flow of an item from distribution centers and intermediary depots to delivery point j satisfy the item's demand. Constraints 7and (8) guarantee that the shipping flows from distribution center i to delivery point j and from intermediary depot k to delivery point j (where an intermediary deport is already there) are non-negative.…”

“…In today's business environment, gaining advantage in competition with other supply chains is dependent on several requirements, such as reducing cost, increasing service level, and enhancing quality of products [1], [2], which lead to higher levels of customer satisfaction as the most significant factor affecting business success [3]. Supply chains are faced with high dynamism and uncertainty in the business environment [4], which is more vivid when demand and order of the end customers are concerned [5]. The supply chain network should be able to deal with uncertain demand of all of its elements including producers, suppliers, and distribution centers [6].…”

Influence of Two Different Producers in a Competitive Location Problem

“…In general, a bi-level programming problem is a mathematical program with an optimization problem in the constraint. Each decision maker attempts to determine the decision variables under their control to optimize their own objective function regardless of the one of the other [1]. The main objective of this paper is to develop a mathematical model for the 2 competitive facility location problem with the highest degree of adaptability to the real-world applications; for example, each producer can spend a limited budget on expanding the facilities or production sites which has not been considered by many researchers up to now.…”

“…show that each acceptable solution of the upper-level problem with an ordered triple of  , for which the lower-level problem will have an optimum solution in the form of In addition, we denote each acceptable solution of the follower problem with An admissible solution to the above leader-follower problem will be expressed as   , XY , the value of which can be determined by replacement in equation(1) and is represented by…”

Resilience Supplier Selection and order allocation under uncertainty

“…Rapid movements towards globalization, competitive marketplace, remarkable advances in technology, and high costumers' expectations have convinced companies to reduce costs and increase their competitive advantages [1]. A supply chain encompasses suppliers, manufacturers, distributers, retailers, and costumers which begins with purchasing raw 2 materials and ends with consumption of final product by customer [2].…”