scholarly journals Designing a clothing supply chain network considering pricing and demand sensitivity to discounts and advertisement

Author(s):  
Mohammad Mahdi Paydar ◽  
Marjan Olfati ◽  
chefi Triki

These days, clothing companies are becoming more and more developed around the world. Due to the rapid development of these companies, designing an efficient clothing supply chain network can be highly beneficial, especially with the remarkable increase in demand and uncertainties in both supply and demand. In this study, a bi-objective stochastic mixed-integer linear programming model is proposed for designing the supply chain of the clothing industry. The first objective function maximizes total profit and the second one minimizes downside risk. In the presented network, the initial demand and price are uncertain and are incorporated into the model through a set of scenarios. To solve the bi-objective model, weighted normalized goal programming is applied. Besides, a real case study for the clothing industry in Iran is proposed to validate the presented model and developed method. The obtained results showed the validity and efficiency of the current study. Also, sensitivity analyses are conducted to evaluate the effect of several important parameters, such as discount and advertisement, on the supply chain .  The results indicate that considering the optimal amount for discount parameter can conceivably enhance total profit by about 20% compared to the time without this discount scheme. When we take the optimized parameter into account for advertisement, 12% is obtained for the total profit. Based on our findings, the more the expected profit value, the higher the total amount of total profit and risk.  The results of this research also provide some interesting managerial insights for managers.

2021 ◽  
pp. 1-12
Author(s):  
Peng-Sheng You ◽  
Yi-Chih Hsieh

Leveraging their networks, bike rental companies usually provide customers with services for renting and returning bikes at different bike stations. Over time, however, rental networks may encounter problems with unbalanced bike stocks. The potential imbalance between supply and demand at bike stations may result in lost sales for stations with relatively high demand and underutilization for stations with relatively low demand. This paper proposed a constrained mixed-integer programming model that uses operator-based redistribution and user-based price approach to rebalance bikes across bike stations. This paper aims to maximize total profit over a planning horizon by determining operator-based bike transfers and dynamic pricing. The proposed model is a non-deterministic polynomial-time problem, and thus, a heuristic was developed based on linear programming and evolutionary computation to perform model solving. Numerical experiments reveal that the proposed method performed better than Lingo, a well-known commercial software. Sensitivity analyses were also performed to investigate the impact of changes in system parameters on computational results.


2012 ◽  
Vol 2012 ◽  
pp. 1-23 ◽  
Author(s):  
Armin Jabbarzadeh ◽  
Seyed Gholamreza Jalali Naini ◽  
Hamid Davoudpour ◽  
Nader Azad

This paper studies a supply chain design problem with the risk of disruptions at facilities. At any point of time, the facilities are subject to various types of disruptions caused by natural disasters, man-made defections, and equipment breakdowns. We formulate the problem as a mixed-integer nonlinear program which maximizes the total profit for the whole system. The model simultaneously determines the number and location of facilities, the subset of customers to serve, the assignment of customers to facilities, and the cycle-order quantities at facilities. In order to obtain near-optimal solutions with reasonable computational requirements for large problem instances, two solution methods based on Lagrangian relaxation and genetic algorithm are developed. The effectiveness of the proposed solution approaches is shown using numerical experiments. The computational results, in addition, demonstrate that the benefits of considering disruptions in the supply chain design model can be significant.


Author(s):  
Hsin-Wei Hsu

The green supply chain management has drawn researchers’ attention in recent years, but most of the proposed models for green topics on the subject are case based, and for this reason, they lack generality. In this work, the design of a supply chain network is studied. In this chapter, we try to overcome this limitation and a generalized model is proposed, in which a logistics chain network problem is formulated into a 0-1 mixed integer linear programming model and the decisions for the function of manufactures, distribution centers, and dismantlers will be suggested with minimum cost. A numerical example is provided for illustration.


2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Jian Wang ◽  
Xueyan Wang ◽  
Mingzhu Yu

This paper studies a supply chain network design model with price competition. The supply chain provides multiple products for a market area in multiple periods. The model considers the location of manufacturers and retailers and assumes a probabilistic customer behavior based on an attraction function depending on both the location and the quality of the retailers. We aim to design the supply chain under the capacity constraint and maximize the supply chain profit in the competitive environment. The problem is formulated as a mixed integer nonlinear programming model. To solve the problem, we propose two heuristic algorithms—Simulated Annealing Search (SA) and Particle Swarm Optimization (PSO)—and numerically demonstrate the effectiveness of the proposed algorithms. Through the sensitivity analysis, we give some management insights.


2011 ◽  
pp. 327-341
Author(s):  
Hsin-Wei Hsu

The green supply chain management has drawn researchers’ attention in recent years, but most of the proposed models for green topics on the subject are case based, and for this reason, they lack generality. In this work, the design of a supply chain network is studied. In this chapter, we try to overcome this limitation and a generalized model is proposed, in which a logistics chain network problem is formulated into a 0-1 mixed integer linear programming model and the decisions for the function of manufactures, distribution centers, and dismantlers will be suggested with minimum cost. A numerical example is provided for illustration.


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