A network economic model for supply chain versus supply chain competition
We study a supply chain economy (SCE) that comprises heterogeneous SC involving multiple products and competing for multiple markets. The proposed network model is built upon operation links and interface links, representing, respectively, substantial SC operations and coordination functions between the operations. The paper presents a variational inequality formulation of the problem, the solution of which determines the winning SC and their market shares in the equilibrium of SCE. We furnish qualitative properties such as existence and uniqueness of the equilibrium. Numerical examples are presented for illustrative purpose.
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Volume (Year): 34 (2006)
Issue (Month): 3 (June)
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- Lakhal, Salem & Martel, Alain & Kettani, Ossama & Oral, Muhittin, 2001. "On the optimization of supply chain networking decisions," European Journal of Operational Research, Elsevier, vol. 129(2), pages 259-270, March.
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- Nagurney, Anna & Takayama, Takashi & Zhang, Ding, 1995. "Massively parallel computation of spatial price equilibrium problems as dynamical systems," Journal of Economic Dynamics and Control, Elsevier, vol. 19(1-2), pages 3-37.
- Charles J. Corbett & Uday S. Karmarkar, 2001. "Competition and Structure in Serial Supply Chains with Deterministic Demand," Management Science, INFORMS, vol. 47(7), pages 966-978, July.
- Beamon, Benita M., 1998. "Supply chain design and analysis:: Models and methods," International Journal of Production Economics, Elsevier, vol. 55(3), pages 281-294, August.
- Erenguc, S. Selcuk & Simpson, N. C. & Vakharia, Asoo J., 1999. "Integrated production/distribution planning in supply chains: An invited review," European Journal of Operational Research, Elsevier, vol. 115(2), pages 219-236, June.
- Gérard P. Cachon & Paul H. Zipkin, 1999. "Competitive and Cooperative Inventory Policies in a Two-Stage Supply Chain," Management Science, INFORMS, vol. 45(7), pages 936-953, July.
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