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**Particle swarm optimization for bi-level pricing problems in supply chains.**
*(English)*
Zbl 1230.90179

Summary: With rapid technological innovation and strong competition in hi-tech industries such as computer and communication organizations, the upstream component price and the downstream product cost usually decline significantly with time. As a result, an effective pricing supply chain model is very important. This paper first establishes two bi-level pricing models for pricing problems with the buyer and the vendor in a supply chain designated as the leader and the follower, respectively. A particle swarm optimization (PSO) based algorithm is developed to solve problems defined by these bi-level pricing models. Experiments illustrate that this PSO based algorithm can achieve a profit increase for buyers or vendors if they are treated as the leaders under some situations, compared with the existing methods.

### MSC:

90C30 | Nonlinear programming |

91B24 | Microeconomic theory (price theory and economic markets) |

90C59 | Approximation methods and heuristics in mathematical programming |

### Keywords:

two-stage supply chain; bi-level programming; hierarchical decision-making; optimization; particle swarm optimization
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\textit{Y. Gao} et al., J. Glob. Optim. 51, No. 2, 245--254 (2011; Zbl 1230.90179)

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