Abstract

In this paper, we present a model for supply chain network design (SCND) with anticipation of variable delivered price competition in markets under deterministic and price-dependent demands and with the presence of rivals. The objective is to design a new SC under a capacity constraint in order to maximize the future profit of the SC in competing markets. The structure of the network of the new SC is assumed to be set ‘once and for all’ as a strategic decision; then the price adjustment is possible throughout the course of the competition as a decision at the operation level. In this paper, a new model for oligopolistic competitive SCND is proposed for each of the following two strategies: (1) ‘single product strategy’ and (2) ‘substitutable product strategy’. Finally, we illustrate the model through several numerical examples.