Designing an agile supply chain network in terms of demand dependence on price

In this paper, we consider an agile supply chain network design problem with multiple level and multiple periods under a situation where the customer demands rate is assumed to be depend on customer price. This network includes three-level supply chain with multi-manufacturer, multi-distribution and multi-retailer. All these actors are taken into account in order to generalize the network structure that can however be simpler in principle. Integrated decisions making in this problem include selection of partners in each echelon, demand management, pricing, production, inventory, and distribution planning. Considered Integrated Pricing-Production Decisions problem in this paper is multi-product at different quality levels. We present a model for the management of the chain addressing supply planning and allowing the improvement of the manufacturing system agility in terms of ability in reconfiguration to meet demand. A mixed integer programming (MIP) model formulates the overall decisions required to maximize profit. A numerical problem illustrates the applicability of the models.