Presenting a Multi-Objective Mathematical Model for Designing a Logistics Network with Transfer Pricing and Transportation Cost Allocation: A Robust Optimization Approach

Today, to satisfy the needs of customers in the supply chain, there have been considered the design and optimization of the logistic networks. The transfer pricing is one of the most important and the most complex issues that multinational companies faced to it. This article provides a multi-objective mathematical model in order to design a logistic network by considering the transfer pricing and the transportation cost allocation. There has been used the mixed integer nonlinear programming to model the problem. This network has three levels: the supplier, distribution center and the retailer. To deal with the uncertainty in the parameters of the model, there has been used the robust optimization approach and eventually phased solution approach by TH method. Today, to satisfy the needs of customers in the supply chain, there have been considered the design and optimization of the logistic networks. The transfer pricing is one of the most important and the most complex issues that multinational companies faced to it. This article provides a multi-objective mathematical model in order to design a logistic network by considering the transfer pricing and the transportation cost allocation. There has been used the mixed integer nonlinear programming to model the problem.