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Resilient network design of two supply chains under price competition: game theoretic and decomposition algorithm approach

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Abstract

This paper utilizes a Stackelberg game approach for designing resilient supply chains under price competition and facilities disruption. The impact of using resilience strategies, namely holding extra inventory at distribution centers and considering reliable distribution centers, was investigated on the supply chains competition. A two-phase bi-level mixed integer programming approach is utilized to model the assumed problem, and a decomposition-based approach is utilized to solve the resultant model. Then, the performance of the presented model and solution approach is examined through numerical experiments. Finally, some discussions are presented with a number of examples, and managerial insights are suggested for the conditions similar to the assumed problem. Our analysis focuses on exploring the advantages of considering resilience strategies in the competitive supply chain netwrok design problems.

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  1. https://www.oecd.org/newsroom/4375896.pdf.

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Authors and Affiliations

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

    Ata Allah Taleizadeh, Ali Ghavamifar & Amir Khosrojerdi

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  1. Ata Allah Taleizadeh
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  2. Ali Ghavamifar
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  3. Amir Khosrojerdi
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Correspondence to Ata Allah Taleizadeh.

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Taleizadeh, A.A., Ghavamifar, A. & Khosrojerdi, A. Resilient network design of two supply chains under price competition: game theoretic and decomposition algorithm approach. Oper Res Int J 22, 825–857 (2022). https://doi.org/10.1007/s12351-020-00565-7

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  • DOI: https://doi.org/10.1007/s12351-020-00565-7

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