Centralized Supply Chain Network Design: Monopoly, Duopoly, and Oligopoly Competitions under Uncertainty

This paper presents a competitive supply chain network design problem in which one, two, or three supply chains are planning to enter theprice-dependent markets simultaneously in uncertain environments and decide to set the prices and shape their networks. The chains produce competitive products either identical or highly substitutable. Fuzzy multi-level mixed integer programming is used to model the competition modes, and then the models are converted into an integrated bi-level one to be solved, in which the inner part sets the prices in dynamic competition and the outer part shapes the network cooperatively.Finally, a real-world problem is investigatedto illustrate how the bi-level model works and discuss how price, market share, total income, and supply chain network behave with respect to key marketing activities such as advertising, promotions, and brand loyalty.

Keywords:

Competitive supply chain network design , Fuzzy multi-level mixed integer programming , Bi-level programming , Nash equilibrium