Designing supply chain network with discount policy and specific price-dependent demand function

Document Type : IIIEC 2021

Authors

School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

Abstract

In this study, supply chain network design is considered. Responsibility and profitability are the company's main features, so we proposed a model to maximize profit, reducing logistic costs, especially shortage costs, to increase responsibility. Adopting the right sales policy by a seller is an issue that needs to be addressed. In this research, we try to improve sales conditions based on each channel's capacity by considering the all unit discount policy for each channel's sale. We used a price-dependent demand function to bring the situation closer to the real world. We considered the factor of advertising and inflation on demand in this issue. A mixed-integer nonlinear programming model is introduced for the problem and formulated in GAMS software; then, sensitivity analysis examines some parameters.

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Main Subjects

References

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History

  • Receive Date: 26 August 2021
  • Accept Date: 26 August 2021

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