Optimization of Agricultural Productions Supply Chain Coverage Based on Bi-level Programming Approach

Abstract:

A bi-level programming model is constructed in combination with the characteristics of agricultural materials supply chain to determine the quantity, position, size and distribution of agricultural materials supply chain factory by maximizing the customers’ total profits. Sensitivity variables of time and distance are introduced to reflect the sensitive degree when customers select suppliers for transportation distance and product price. The coverage of agricultural materials supply chain is optimized by the model. The target of the upper level of the model is to maximize the profit by taking the deciders’ interests into account. The lower level of the model，where the customers’ interests are considered，aims to maximize the coverage in the competition environment. A case study of the model in an agricultural company on the basis of the genetic algorithm proves the model to be effective.

Key words:bi-level programming approach; supply chain location; largest covering; competition