A Particle Swarm Optimization Algorithm for Solving Pricing and Lead Time Quotation in a Dual-Channel Supply Chain with Multiple Customer Classes

Abstract

The combination of traditional retail channel with direct channel adds a new dimension of competition to manufacturers’ distribution system. In this paper, we consider a make-to-order manufacturer with two channels of sale, sale through retailers and online direct sale. The customers are classified into different classes, based on their sensitivity to price and due date. The orders of traditional retail channel customers are fulfilled in the same period of ordering. However, price and due date are quoted to the online customers based on the available capacity as well as the other orders in the pipeline. We develop two different structures of the supply chain: centralized and decentralized dual-channel supply chain which are formulated as bilevel binary nonlinear models. The Particle Swarm Optimization algorithm is also developed to obtain a satisfactory near-optimal solution and compared to a genetic algorithm. Through various numerical analyses, we investigate the effects of the customers’ preference of a direct channel on the model’s variables.

Assessing the Role of Market Share Development on Competitive Advantage in Dairy Companies

“…Managers can best respond to customer needs by identifying new markets and also determining market needs; targeting customer needs and different segments better, a company can adjust its products and marketing strategies to better meet these needs. These findings are consistent with the results reported by other researchers (Ar et al, 2020;Bahari & Taheri rouzbahani, 2023;Honarvar & Rezaee, 2019;Jafari et al, 2017;Sahafzadeh & Haghighi, 2023).…”

“…The goal of this network is to ensure the quality and safety of produced milk, improve the economic conditions of milk producers, and create a direct and fair connection between producers and consumers. These findings are consistent with the results reported by other researchers (Ar et al, 2020;Bahari & Taheri rouzbahani, 2023;Honarvar & Rezaee, 2019;Jafari et al, 2017;Sahafzadeh & Haghighi, 2023).…”

“…Planning includes setting goals and preparing a roadmap to achieve those goals, while goal setting involves identifying and prioritizing specific market segments or customer groups for focus. These findings are consistent with the results reported by other researchers (Ar et al, 2020;Bahari & Taheri rouzbahani, 2023;Daněk et al, 2022;Honarvar & Rezaee, 2019;Jafari et al, 2017;Sahafzadeh & Haghighi, 2023).…”

“…Market review and analysis of customer behavior aim to identify new opportunities and weaknesses in the market; reviewing the company's competitors in the target market to identify their strengths and weaknesses and determine appropriate strategies for competition; reviewing external factors such as political, social, economic, and technological to identify new opportunities and threats that may affect the market. The variable of market share strategy is aligned with the research (Ar et al, 2020;Bahari & Taheri rouzbahani, 2023;Honarvar & Rezaee, 2019;Jafari et al, 2017;Sahafzadeh & Haghighi, 2023), who in their study examined market orientation and market share development.…”

“…Given the direct relationship between profit and risk, companies are obliged to manage their market share with the same precision they manage every other aspect of their business. While most companies can benefit from efforts to increase their market share, some may find that at a certain point (or possibly beyond), the expected costs and risks outweigh the anticipated benefits (Honarvar & Rezaee, 2019). Additionally, companies with a high market share often receive better prices from suppliers because their larger order volumes increase their purchasing power.…”