Designing supply chain network with discount policy and specific price-dependent demand function

In this study, supply chain network design is considered. Responsibility and profitability are the company's main features, so we proposed a model to maximize profit, reducing logistic cost, especially shortage cost, to increase responsibility. Adopting the right sales policy by a seller is an issue that needs to be addressed. In this research, by considering the all unit discount policy for each channel's sale, we try to improve sales conditions based on each channel's capacity. We used a price-dependent demand function to bring the situation closer to the real world. We considered the factor of advertising and inflation on demand in this issue. A mixed integer nonlinear programming model is introduced for the problem and formulated in GAMS software, then Sensitivity analysis is examined some parameters.

Keywords:

supply chain network design , discount policy , price-depended demand function , logistic cost , multi-channel , multi-product