Developing a new stochastic competitive model regarding inventory and price

Journal of Industrial Engineering International

دوره 11، شماره 3، آذر 2015   

نویسندگان

Reza Rashid^{* 1}؛ Ali Bozorgi-Amiri²؛ S. M . Seyedhoseini¹

¹Department of Industrial Engineering, Iran University of Science and Technology, Narmak, 16844, Tehran, Iran

²School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

چکیده

Within the competition in today’s business environment, the design of supply chains becomes more complex than before. This paper deals with the retailer’s location problem when customers choose their vendors, and inventory costs have been considered for retailers. In a competitive location problem, price and location of facilities affect demands of customers; consequently, simultaneous optimization of the location and inventory system is needed. To prepare a realistic model, demand and lead time have been assumed as stochastic parameters, and queuing theory has been used to develop a comprehensive mathematical model. Due to complexity of the problem, a branch and bound algorithm has been developed, and its performance has been validated in several numerical examples, which indicated effectiveness of the algorithm. Also, a real case has been prepared to demonstrate performance of the model for real world.

کلیدواژه‌ها

Competitive location problem . Multi؛ product inventory . Location inventory . Queuing theory