DEVELOPING A MULTI-OBJECTIVE LINEAR PROGRAMMING MODEL FOR COPETITION BETWEEN TWO SUPPLY CHAINS

Mathematical models are commonly-used tools for modeling supply chain-related problems. In this paper, we propose a linear programming model for competition between two supply chains. These two supply chains consist of some partners that are material supplier, manufacturing and logistics partners. In the presented model, since several objective functions are to be optimized, multi-objective decision making (MODM) techniques must be used. Therefore, goal programming (GP) is being adopted for solving the multi-objective problem. The amount of profit for each partner and the global transportation cost for each supply chain are considered as goals. Finally a numerical example illustrates the model. The numerical example includes two supply chains, each has two material supplier, three manufacturing and two logistics partners that compete on the market share of merchandise.