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On the relationship between supply chain and transportation network equilibria: A supernetwork equivalence with computations

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  • Nagurney, Anna

Abstract

In this paper, we consider the relationship between supply chain network equilibrium and transportation network equilibrium. We demonstrate that a supply chain network equilibrium model introduced earlier can be reformulated as a transportation network equilibrium model with elastic demands through a supernetwork reformulation of the former. This equivalence allows us to transfer the wealth of methodological tools developed for transportation network equilibrium modeling, analysis, and computation to the study of supply chain networks. To illustrate the power of the results, we then apply an algorithm developed for the solution of transportation network equilibrium problems with elastic demands to compute the product shipments and demand market prices in several numerical supply chain network examples taken from the existing literature.

Suggested Citation

  • Nagurney, Anna, 2006. "On the relationship between supply chain and transportation network equilibria: A supernetwork equivalence with computations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(4), pages 293-316, July.
  • Handle: RePEc:eee:transe:v:42:y:2006:i:4:p:293-316
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    Cited by:

    1. Somayeh Soheilirad & Kannan Govindan & Abbas Mardani & Edmundas Kazimieras Zavadskas & Mehrbakhsh Nilashi & Norhayati Zakuan, 2018. "Application of data envelopment analysis models in supply chain management: a systematic review and meta-analysis," Annals of Operations Research, Springer, vol. 271(2), pages 915-969, December.
    2. Ghavamifar, Ali & Makui, Ahmad & Taleizadeh, Ata Allah, 2018. "Designing a resilient competitive supply chain network under disruption risks: A real-world application," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 115(C), pages 87-109.
    3. Zugang Liu & Anna Nagurney, 2009. "An integrated electric power supply chain and fuel market network framework: Theoretical modeling with empirical analysis for New England," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(7), pages 600-624, October.
    4. Possamai, Janaína Poffo & Pescador, Andresa & Mayerle, Sérgio Fernando & Neiva de Figueiredo, João, 2015. "Optimal commodity price stabilization as a multi-period spatial equilibrium problem: A supernetwork approach with public buffer stocks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 289-310.
    5. Talley, Wayne K. & Ng, ManWo, 2013. "Maritime transport chain choice by carriers, ports and shippers," International Journal of Production Economics, Elsevier, vol. 142(2), pages 311-316.
    6. Huang, Yongxi & Chen, Yihsu, 2014. "Analysis of an imperfectly competitive cellulosic biofuel supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 72(C), pages 1-14.
    7. Guo, Zhaomiao & Fan, Yueyue, 2017. "A Stochastic Multi-Agent Optimization Model for Energy Infrastructure Planning Under Uncertainty and Competition," Institute of Transportation Studies, Working Paper Series qt89s5s8hn, Institute of Transportation Studies, UC Davis.
    8. Lu, Jie & Gupte, Akshay & Huang, Yongxi, 2018. "A mean-risk mixed integer nonlinear program for transportation network protection," European Journal of Operational Research, Elsevier, vol. 265(1), pages 277-289.
    9. Talley, Wayne K. & Ng, ManWo, 2018. "Hinterland transport chains: A behavioral examination approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 113(C), pages 94-98.
    10. Tian, Ru-Ya & Zhang, Xue-Fu & Liu, Yi-Jun, 2015. "SSIC model: A multi-layer model for intervention of online rumors spreading," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 427(C), pages 181-191.
    11. Zhaomiao Guo & Yueyue Fan, 2017. "A Stochastic Multi-agent Optimization Model for Energy Infrastructure Planning under Uncertainty in An Oligopolistic Market," Networks and Spatial Economics, Springer, vol. 17(2), pages 581-609, June.
    12. Jahani, Hamed & Abbasi, Babak & Alavifard, Farzad & Talluri, Srinivas, 2018. "Supply chain network redesign with demand and price uncertainty," International Journal of Production Economics, Elsevier, vol. 205(C), pages 287-312.
    13. Rezapour, Shabnam & Hassani, Ashkan & Farahani, Reza Zanjirani, 2015. "Concurrent design of product family and supply chain network considering quality and price," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 18-35.
    14. Qiang, Patrick & Nagurney, Anna, 2012. "A bi-criteria indicator to assess supply chain network performance for critical needs under capacity and demand disruptions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(5), pages 801-812.
    15. Rezapour, Shabnam & Farahani, Reza Zanjirani & Dullaert, Wout & De Borger, Bruno, 2014. "Designing a new supply chain for competition against an existing supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 124-140.
    16. Xu, Y.D. & Li, S.J. & Teo, K.L., 2012. "Vector network equilibrium problems with capacity constraints of arcs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 567-577.
    17. Farahani, Reza Zanjirani & Rezapour, Shabnam & Drezner, Tammy & Fallah, Samira, 2014. "Competitive supply chain network design: An overview of classifications, models, solution techniques and applications," Omega, Elsevier, vol. 45(C), pages 92-118.
    18. Yamada, Tadashi & Imai, Koji & Nakamura, Takamasa & Taniguchi, Eiichi, 2011. "A supply chain-transport supernetwork equilibrium model with the behaviour of freight carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 887-907.

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