Constructing a new robust bilevel fashion product supply chain network with uncertain demand and transportation cost
Sifan Gao et al.
Abstract
In this paper, we address the construction of a multi-period fashion product supply chain network (FSCN) with the incorporation of production discounts and transportation quantity decisions. A bilevel design framework is proposed to capture the decision-making interaction between a fashion product manufacturer (acting as a leader) and retailers (acting as followers) over multiple periods. By utilizing Karush-Kuhn-Tucker (KKT) conditions, the bilevel optimization model can be transformed into a single-level mixed-integer linear programming (MILP) model. Furthermore, uncertainty in unit transportation cost and demand was addressed via a robust optimization framework, with the aim of balancing the optimal decisions of the upper and lower decision makers. To solve the proposed robust model efficiently, we designed a tailored Benders decomposition (BD) algorithm. To validate the effectiveness of our proposed model and BD algorithm, a case study based on ZARA was conducted. Thus, based on extensive experiments, the benefits of the proposed methods are illustrated, and significant insights are obtained for decision makers.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.