Enhanced joint pricing and lot-sizing decisions in a serial supply-chain

Lisha Duan, Barbara Venegas Quintrileo, Jose A. Ventura, Sang Jin Kweon, Seong Wook Hwang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In this research, we consider a serial supply chain with multiple stages in a centralized control scenario. Within this supply chain, the first stage faces a supplier selection decision for a particular product that experiences a price-sensitive demand. The demand is represented as a logit function, which parameters account for the range and price sensitivity factors. Suppliers are capacitated and offer their individual fixed unit price with a corresponding quality level for the product. The buying stage needs to decide which suppliers to choose and how to allocate orders, determining the optimal inventory policy for all stages and the retail price to offer to end customers, while maximizing the total profit of the supply chain. In this context, we formulate the problem as a mixed integer nonlinear programming model and propose a heuristic approach to overcome the complexity of the model. Computational experiments are carried out to examine the performance of the proposed heuristic.

Original languageEnglish (US)
Title of host publicationIISE Annual Conference and Expo 2019
PublisherInstitute of Industrial and Systems Engineers, IISE
ISBN (Electronic)9781713814092
StatePublished - 2019
Event2019 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2019 - Orlando, United States
Duration: May 18 2019May 21 2019

Publication series

NameIISE Annual Conference and Expo 2019

Conference

Conference2019 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2019
CountryUnited States
CityOrlando
Period5/18/195/21/19

All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering
  • Industrial and Manufacturing Engineering

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