Supply network planning with dynamic spot sales pricing: A case study from the chemical industry

H. O. Günther, C. Habla, M. Kannegiesser, P. Van Beek, M. Grunow

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

A linear optimization model for supply network planning of chemical commodities is presented. The focus of the modeling approach is on dynamic pricing for spot sales demand and on the coordination of sales and supply decisions throughout the entire value chain. To consider the volatility of spot sales prices and demand, respective price-quantity functions are derived. A two-phase optimization approach is suggested which generates robust supply network plans ensuring minimum profitability even in the case of worst-case spot sales price scenarios.

Original languageEnglish
Title of host publicationIMECS 2007 - International MultiConference of Engineers and Computer Scientists 2007
Pages2081-2086
Number of pages6
StatePublished - 2007
Externally publishedYes
EventInternational MultiConference of Engineers and Computer Scientists 2007, IMECS 2007 - Kowloon, Hong Kong
Duration: 21 Mar 200723 Mar 2007

Publication series

NameLecture Notes in Engineering and Computer Science
Volume2
ISSN (Print)2078-0958

Conference

ConferenceInternational MultiConference of Engineers and Computer Scientists 2007, IMECS 2007
Country/TerritoryHong Kong
CityKowloon
Period21/03/0723/03/07

Keywords

  • Dynamic pricing
  • Linear programming
  • Scenario planning
  • Supply network planning

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