Dynamic supply chain network design with capacity planning and multi-period pricing

Mohammad Fattahi, Masoud Mahootchi, Kannan Govindan*, Seyed Mohammad Moattar Husseini

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

71 Citations (Scopus)


This paper addresses a new problem in designing and planning a multi-echelon and multi-product supply chain network over a multi-period horizon in which customer zones have price-sensitive demands. Based on price-demand relationships, a generic method is presented to obtain price levels for products and then, a mixed-integer linear programming model is developed. Due to the problem intractability, a simulated annealing algorithm that uses some developed linear relaxation-based heuristics for capacity planning and pricing is presented. Numerical results demonstrate the significance of the model as well as the efficiency of the solution algorithm and linear relaxation-based heuristics.
Original languageEnglish
Pages (from-to)169-202
Number of pages34
JournalTransportation Research Part E: Logistics and Transportation Review
Early online date24 Jul 2015
Publication statusPublished - 1 Sept 2015
Externally publishedYes


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