Competitive Supply Chain Design Considering Supply Disruption: A Case of the Decorative Stones Supply Chain

Abstract

The main aim of this paper is to provide a model for supply chain design of decorative stones in competitive conditions by taking into account the risk of the disruption. The main tools used in this study are mathematical programming and game theory which Stackelberg game is often used for competitive modeling. The aim of the proposed model is to consider potential risks of disruption and competitive situation in the market. Also, due to the problem situation, we use meta-heuristic methods like particle swarm optimization and biogeography based optimization for solving and verification of the model. The results show that the occurrence of disruption affects in location decisions of production and distribution centers, price of products and profit of chain components

Keywords

• competition
• disruption
• supply chain design
• stackelberg game
• particle swarm optimization