A Bi-Level Mathematical Model Proposal for Procurement Process of Liquid Good in Competitive Environment


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ÖZÇELİK G., Temel Gencer C.

EGE ACADEMIC REVIEW, cilt.16, ss.85-92, 2016 (ESCI, TRDizin) identifier

Özet

Modeling of the competitive decision making process between two players which have opposite objectives is defined as "Network Interdiction Problem" in the literature. In this study, procurement process in which two competitive firms procure liquid good from the same set of the suppliers is handled. This process is designed as a network interdiction problem for competition environment in which one of the firms tries to procure goods with minimum cost, the other one tries to maximize the procurement cost of the competitor with owned interdiction budget, as well. In this problem transforming the structure of supply chain into minimum cost flow network, a bi-level mathematical model is proposed.