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

Özçelik G. , Temel Gencer C.

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

  • Yayın Türü: Makale / Derleme
  • Cilt numarası: 16
  • Basım Tarihi: 2016
  • Doi Numarası: 10.21121/eab.2016ozel24417
  • Sayfa Sayıları: ss.85-92


Modeling of the competitive decision-making process between two players which have opposite objectives is defined as the "Network Interdiction Problem" in the literature. In this study, the procurement process in which two competitive firms procure liquid goods from the same set of suppliers is handled. This process is designed as a network interdiction problem for a competitive 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 the supply chain into a minimum cost flow network, a bi-level mathematical model is proposed.