SUNConferences, Computers and Industrial Engineering 42

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A Bilevel Programming Approach In A Supply Hub In Industrial Park (SHIP)
Xuan Qiu, George Q Huang

Last modified: 2012-06-15


A Supply Hub in Industrial Park (SHIP) gains revenue from leasing space. Important questions faced by the SHIP and each manufacturer within the same industrial park are: how to price space considering manufacturers’ responses, and how to replenish raw materials and deliver finished products in response to SHIP’s storage price. This paper discusses how SHIP and manufacturers interact to optimize their decisions on storage pricing, replenishment and delivery. A dynamic storage pricing strategy depending on storage length is adopted. A bilevel program is proposed to model this problem. A numerical study is conducted to examine the influences of major parameters.


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