IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Differential Return on Investment Optimization: Pricing, Lotsizing, and Shipment Considerations in a Two-Echelon Supply Chain

Differential Return on Investment Optimization: Pricing, Lotsizing, and Shipment Considerations in a Two-Echelon Supply Chain
View Sample PDF
Author(s): Reza Ghasemy Yaghin (Amirkabir University of Technology, Iran), Hadi Mosadegh (Amirkabir University of Technology, Iran) and S. M. T. Fatemi Ghomi (Amirkabir University of Technology, Iran)
Copyright: 2018
Pages: 23
Source title: Handbook of Research on Applied Optimization Methodologies in Manufacturing Systems
Source Author(s)/Editor(s): Ömer Faruk Yılmaz (Istanbul Technical University, Turkey & Yalova University, Turkey) and Süleyman Tüfekçí (University of Florida, USA)
DOI: 10.4018/978-1-5225-2944-6.ch009

Purchase


Abstract

A two-echelon supply chain is studied that involves a retailer who faces demand from two or more market segments and enable to set different prices and marketing expenditures and a supplier who desires to find optimal number of shipments through an integrated system. A new mixed-integer non-linear fractional programming (MINLFP) model is developed. In order to solve the resultant MINLFP model, the constrained non-linear programming model is reformulated as an unconstrained one using penalty terms. Two meta-heuristics, namely simulated annealing (SA) and imperialist competitive algorithm (ICA), are applied to solve the relaxed unconstrained model. Numerical results show that ICA can reach better solutions in comparison with SA. However, SA has the ability of providing more robust solutions which are converged to a good solution. The chapter concludes with superiority of SA.

Related Content

Fraj Naifar, Mariem Gzara, Taicir Loukil Moalla. © 2018. 19 pages.
Ayse Aycim Selam, Ercan Oztemel. © 2018. 23 pages.
Pauline Ong, Desmond Daniel Vui Sheng Chin, Choon Sin Ho, Chuan Huat Ng. © 2018. 14 pages.
Emek Gamze Köksoy Atiker, Fatma Betül Yeni, Peiman A. Sarvari, Emre Çevikcan. © 2018. 20 pages.
Peiman A. Sarvari, Fatma Betül Yeni, Emre Çevikcan. © 2018. 30 pages.
Onur Doğan. © 2018. 18 pages.
Ömer Faruk Yılmaz, Mehmet Bülent Durmuşoğlu. © 2018. 37 pages.
Body Bottom