Agile Supply Chain Network Design with Integrated Production, Market Selection and Pricing Planning

In today's competitive world, there are a lot of parameters such as market selection and pricing which affect the level of demand. Combination of marketing and pricing is a powerful tool to control demand in a competitive supply chain. For design production and supply planning model in agile supply chain, a three-level supply chain is considered, including producers, distribution and potential markets where considered as chain customers. In this problem there are M potential markets each of them and every one of their orders selected on the basis of their product sales prices, and then in each period their demands are provided with pricing policy in an optimal level that maximizes chain profit. Also the best production plan to meet the level of determined demands of selected markets is provided. On the other hand, the problem also is an order selection. In order to design an agile supply chain network model a nonlinear mixed integer programming that provides required processes to maximize the total profits is presented. The integrated decisions in this program includes selecting participants for each level, demand management, pricing, production, inventory and distribution planning. Finally, to check the quality of the model, three groups of example randomly is created, solving by software Gams, problems with small, medium and large size.