Modeling the leader–follower supply chain network under uncertainty and solving by the HGALO algorithm

Abstract

The purpose of this article is to develop a competitive supply chain network (SCN) in the face of uncertainty. The objective of the leader chain is to maximize total network profits by strategically locating suppliers, manufacturers, distribution centers, and retailers. Additionally, the follower chain seeks to maximize the network's profit. Both factors, optimal flow allocation to different echelons of the SCN and product pricing, are examined in the leader chain and follower chain. The KKT conditions are used in this article to convert a bi-level model to a one-level model. Additionally, a fuzzy programming technique is used to control the problem's uncertain parameters. According to the results obtained using the fuzzy programming technique, increasing the uncertainty rate increases demand while decreasing the OBFV and average selling price of products. Finally, the problem was untangled using a novel hybrid genetic and ant-lion optimization algorithm (HGALO). The results of problem solving in larger sizes demonstrate HGALO's superior efficiency in comparison with the other algorithm.