A meta-heuristic algorithm for pricing decisions in a supply chain partnership

This study develops a mathematical model which addresses the price and sales decisions of a supplier simultaneously in a coordinated supply chain environment. The integrated pricing model is based upon anticipating the expectations of all supply chain members out of supply chain partnership. Since the model turns out to be a nonlinear mixed integer problem, it requires a robust solution procedure; thus a global search algorithm is developed by combining the principles of simulated annealing (SA) and tabu search (TS) procedures and its performance is tested on a large number of test problems.