Intelligent Physarum Solver for Profit Maximization in Oligopolistic Supply Chain Networks

Introduction

In the dynamic landscape of modern business, supply chain networks play a pivotal role in ensuring the efficient flow of goods and services. Within this intricate web of suppliers, manufacturers, and distributors, one frequently encounters the oligopolistic market structure. Oligopolies, characterized by a small number of dominant firms, are prevalent in various industries, from telecommunications to automotive manufacturing and pharmaceuticals. While these markets offer certain advantages such as economies of scale and innovation, they also pose complex challenges related to resource allocation, pricing strategies, and profit maximization (Silveira & Vasconcelos, 2020). The quest for optimal decision-making in oligopolistic supply chains has driven researchers and practitioners to explore innovative methodologies, seeking solutions that transcend traditional paradigms. The chapter introduces the Intelligent Physarum Solver (IPS), a promising approach based on the remarkable foraging behavior of the Physarum polycephalum slime mold. The IPS harnesses the power of nature-inspired optimization to address the multifaceted challenges posed by oligopolistic supply chain networks (Awad et al., 2023). This chapter explores the complexities of oligopolistic markets and their challenges, highlighting the potential of the Intelligent Supply Chain (IPS) framework, based on natural intelligence principles, to revolutionize supply chain modeling, analysis, and optimization within such markets. It provides a comprehensive understanding of its mathematical foundations, parameters, and objectives (Chu et al., 2021).

The IPS, through practical applications, offers innovative solutions for profit maximization, such as competitive pricing strategies, production allocation optimization, and distribution logistics, enabling firms to navigate the intricate dynamics of oligopolistic environments, as demonstrated through case studies and simulations (Hua et al., 2021). The IPS not only improves decision-making processes but also promotes cooperation among oligopolistic firms, aiming to enhance the profitability of supply chain networks and contribute to the overall success of participating firms by emphasizing collaboration and efficiency (Gao et al., 2019). This chapter explores the potential of nature-inspired intelligence in transforming supply chain management in oligopolistic markets. It explores novel methodologies and practical applications that could reshape the future of profit maximization in supply chain networks.