A goal programming model that ensures efficient usage of limited interdiction budget in the procurement game

Abstract

The paper investigates a procurement game between two rival firms considered as a network interdiction problem (NIP) where an interdictor, using limited interdiction budget, interdicts the node of supplier(s) on a capacitated single echelon multi products supply chain and tries to explicitly maximize the minimum procurement cost of a defender. In the study, a goal programming model is proposed to prevent the situations where the budget is used unnecessary (wasted budget) out of discrete interdiction variable.