Competitive Supply Chain Network Design Considering Marketing Strategies: A Hybrid Metaheuristic Algorithm

In this paper, a comprehensive model is proposed to design a network for multi-period, multi-echelon, and multi-product inventory controlled the supply chain. Various marketing strategies and guerrilla marketing approaches are considered in the design process under the static competition condition. The goal of the proposed model is to efficiently respond to the customers’ demands in the presence of the pre-existing competitors and the price inelasticity of demands. The proposed optimization model considers multiple objectives that incorporate both market share and total profit of the considered supply chain network, simultaneously. To tackle the proposed multi-objective mixed-integer nonlinear programming model, an efficient hybrid meta-heuristic algorithm is developed that incorporates a Taguchi-based non-dominated sorting genetic algorithm-II and a particle swarm optimization. A variable neighborhood decomposition search is applied to enhance a local search process of the proposed hybrid solution algorithm. Computational results illustrate that the proposed model and solution algorithm are notably efficient in dealing with the competitive pressure by adopting the proper marketing strategies.