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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- 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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- 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.
- Nagurney, Anna & Dong, June & Zhang, Ding, 2002. "A supply chain network equilibrium model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(5), pages 281-303, September.
- Nagurney, Anna & Zhang, Ding, 1996. "On the stability of an adjustment process for spatial price equilibrium modeled as a projected dynamical system," Journal of Economic Dynamics and Control, Elsevier, vol. 20(1-3), pages 43-62.
- Dong, June & Zhang, Ding & Nagurney, Anna, 2004. "A supply chain network equilibrium model with random demands," European Journal of Operational Research, Elsevier, vol. 156(1), pages 194-212, July.
- 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.
- 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.
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