Benders decomposition for Supply Chain Network Redesign with Capacity planning and Multi-Period Pricing

Abstract

Managing income is a considerable dimension in supply chain management in current economic atmosphere. Real world situation makes it inevitable not to design or redesign supply chain. Redesign will take place as costs increase or new services for customers’ new demands should be provided. Pricing is an important fragment of Supply chain due to two reasons: first, represents revenue based each product and second, based on supply-demand relations enables Supply chain to provide demands by making suitable changes in facilities and their capacities. In this study, Benders decomposition approach used to solve multi-product, multi-echelon and multi-period supply chain network redesign including price-sensitive customers.

Keywords

• Supply Chain Network Redesign
• Capacity Planning
• Multi-Period Pricing
• Benders Decomposition method