Bi-level vendor–buyer strategies for a time-varying product price

In recent years, two-echelon inventory system has been widely studied by many researchers. Most researches focused on joint integrated model, and very few have applied the bi-level strategies. To conform more to real life, this paper considers a bi-level decision where a vendor or a buyer takes the...

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Bibliographic Details
Published in:Applied mathematics and computation Vol. 219; no. 18; pp. 9670 - 9680
Main Authors: Wee, H.M., Lee, M.C., Yang, P.C., Chung, R.L.
Format: Journal Article
Language:English
Published: Elsevier Inc 15.05.2013
Subjects:
Density information
Elitist genetic algorithm
Nonlinear bi-level programming
Supply chain system
Time-varying pricing
Nonlinear bi-level programming
Elitist genetic algorithm
Time-varying pricing
Supply chain system
Density information
ISSN:0096-3003, 1873-5649
Online Access:Get full text
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Summary:In recent years, two-echelon inventory system has been widely studied by many researchers. Most researches focused on joint integrated model, and very few have applied the bi-level strategies. To conform more to real life, this paper considers a bi-level decision where a vendor or a buyer takes the role of a leader or a follower. We present a bi-level programming formulation for a time-varying product price. A bi-level elitist genetic algorithm is presented to solve the proposed nonlinear bi-level programming problem. Density information is coordinated in the proposed approach to improve the optimal solutions. An experimental data is used to compare the bi-level strategy with the integrated approach.
ISSN:0096-3003
1873-5649
DOI:10.1016/j.amc.2013.03.003