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Analysis of traffic congestion costs in a competitive supply chain

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  • Konur, Dinçer
  • Geunes, Joseph

Abstract

We study a competitive facility location problem with identical suppliers competing in multiple markets subject to distribution network congestion. We first analyze the solution of a symmetric competitive location game and discuss the firms' facility location and equilibrium market supply decisions. Then, we utilize the model to provide analytical characterization of the effects of traffic congestion costs on equilibrium distribution flows. These analytical results permit qualitative characterization of how changes in congestion levels and costs affect equilibrium location and distribution decisions. The results of extensive numerical studies serve to further illustrate the effects of traffic congestion costs on location, market supply quantity, and distribution decisions.

Suggested Citation

  • Konur, Dinçer & Geunes, Joseph, 2011. "Analysis of traffic congestion costs in a competitive supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(1), pages 1-17, January.
    • Handle: RePEc:eee:transe:v:47:y:2011:i:1:p:1-17
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    Citations

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    Cited by:

    1. An, Shi & Cui, Na & Bai, Yun & Xie, Weijun & Chen, Mingliu & Ouyang, Yanfeng, 2015. "Reliable emergency service facility location under facility disruption, en-route congestion and in-facility queuing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 199-216.
    2. Resat, Hamdi G. & Turkay, Metin, 2015. "Design and operation of intermodal transportation network in the Marmara region of Turkey," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 16-33.
    3. Parajuli, Anubhuti & Kuzgunkaya, Onur & Vidyarthi, Navneet, 2021. "The impact of congestion on protection decisions in supply networks under disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    4. Konur, Dinçer & Geunes, Joseph, 2012. "Competitive multi-facility location games with non-identical firms and convex traffic congestion costs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 373-385.
    5. Hongyan Dai & Ling Ge & Yali Liu, 2020. "Information Matters: an Empirical Study of the Efficiency of On-Demand Services," Information Systems Frontiers, Springer, vol. 22(4), pages 815-827, August.
    6. Konur, Dinçer & Geunes, Joseph, 2018. "Supplier wholesale pricing for a retail chain: Analysis of identical market price functions," Omega, Elsevier, vol. 76(C), pages 38-46.
    7. Ouyang, Yanfeng & Wang, Zhaodong & Yang, Hai, 2015. "Facility location design under continuous traffic equilibrium," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 18-33.

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