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A Bilevel Programming Model for a Cohesive Decision-Making on Strategic Pricing and Production Distribution Planning for a Small-Scale Supplier

Akhilesh Kumar

Department of Applied Mathematics, Delhi Technological University, Main Bawana Road, New Delhi 110042, Delhi, India

Department of Mathematics, Arignar Anna Government Arts & Science College, Karaikal 609605, Puducherry, India

E-mail Address: akhilesh.maths@gmail.com

Corresponding author.

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Anjana Gupta

Department of Applied Mathematics, Delhi Technological University, Main Bawana Road, New Delhi 110042, Delhi, India

E-mail Address: anjanagupta@dce.ac.in

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, and

Aparna Mehra

Department of Mathematics, Indian Institute of Technology, Hauz Khas, New Delhi 110016, Delhi, India

E-mail Address: apmehra@maths.iitd.ac.in

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https://doi.org/10.1142/S0219198920400095Cited by:4 (Source: Crossref)

This article is part of the issue:

Special Issue on Operations Research and Game Theory: Modeling and Computation
Guest Editors: S. K. Neogy, R. B. Bapat, D. Dubey and T. Parthasarathy

Abstract

This research develops a decision support for strategic pricing and aggregate production distribution planning for a small-scale supplier intending to penetrate into a potential market engendered by a single buyer. A novel mixed integer bilevel programming model is proposed to formulate the problem in which the supplier is considered as a leader and the buyer is a follower. The proposed model subsumes the assessment of demand share against the price quotation, enabling the supplier to prepare an aggregate production distribution plan accordingly. An integer coded genetic algorithm is used to solve the model and its implementation is exhibited through a test scenario.

Keywords:

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