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Competition and disruption in a dynamic urban supply chain

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  • Friesz, Terry L.
  • Lee, Ilsoo
  • Lin, Cheng-Chang

Abstract

Rapid changes and complexities in business environments have stressed the importance of interactions between partners and competitors, leading supply chains to become the most important element of contemporary business environments. There is a concomitant need for foresight in describing supply chain performance in all operating environments, including those involving punctuated disruptions. Furthermore, the urban metropolis is now widely recognized to be an environment which is especially vulnerable to supply chain disruptions and for which integrated supply chain decisions can produce very substantial net benefits. Accordingly, this paper presents a dynamic supply chain network model formulated as a differential variational inequality; the model is fashioned to allow consideration of supply chain disruption threats to producers, freight carriers, and retail enterprises. The DVI is solved using a fixed-point algorithm, and a simple numerical example, introduced to illustrate how the impacts of supply chain disruptions may be quantified, is presented.

Suggested Citation

  • Friesz, Terry L. & Lee, Ilsoo & Lin, Cheng-Chang, 2011. "Competition and disruption in a dynamic urban supply chain," Transportation Research Part B: Methodological, Elsevier, vol. 45(8), pages 1212-1231, September.
    • Handle: RePEc:eee:transb:v:45:y:2011:i:8:p:1212-1231
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    References listed on IDEAS

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    1. Konstantin Kogan & Charles S. Tapiero, 2007. "Supply Chain Games: Operations Management And Risk Valuation," International Series in Operations Research and Management Science, Springer, number 978-0-387-72776-9, February.
    2. Brian Tomlin, 2006. "On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks," Management Science, INFORMS, vol. 52(5), pages 639-657, May.
    3. Elodie Adida & Georgia Perakis, 2010. "Dynamic Pricing and Inventory Control: Uncertainty and Competition," Operations Research, INFORMS, vol. 58(2), pages 289-302, April.
    4. Terry L. Friesz, 2010. "Dynamic Optimization and Differential Games," International Series in Operations Research and Management Science, Springer, number 978-0-387-72778-3, February.
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    Cited by:

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    2. 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.
    3. Wang, Xiaolei & Ouyang, Yanfeng & Yang, Hai & Bai, Yun, 2013. "Optimal biofuel supply chain design under consumption mandates with renewable identification numbers," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 158-171.
    4. Odile Chanut & Gilles Paché & Falk Wagenhausen, 2012. "Logistique urbaine : refonder les logiques d'intermédiation," Post-Print hal-01767221, HAL.
    5. An, Shi & Cui, Na & Li, Xiaopeng & Ouyang, Yanfeng, 2013. "Location planning for transit-based evacuation under the risk of service disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 1-16.
    6. Chung, Sung H. & Weaver, Robert D. & Friesz, Terry L., 2013. "Strategic response to pollution taxes in supply chain networks: Dynamic, spatial, and organizational dimensions," European Journal of Operational Research, Elsevier, vol. 231(2), pages 314-327.
    7. Sheu, Jiuh-Biing & Chen, Yenming J., 2014. "Transportation and economies of scale in recycling low-value materials," Transportation Research Part B: Methodological, Elsevier, vol. 65(C), pages 65-76.
    8. Zhang, Zhi-Hai & Unnikrishnan, Avinash, 2016. "A coordinated location-inventory problem in closed-loop supply chain," Transportation Research Part B: Methodological, Elsevier, vol. 89(C), pages 127-148.
    9. Chung, Sung H. & Weaver, Robert D. & Friesz, Terry L., 2012. "Oligopolies in pollution permit markets: A dynamic game approach," International Journal of Production Economics, Elsevier, vol. 140(1), pages 48-56.
    10. Shahabi, Mehrdad & Tafreshian, Amirmahdi & Unnikrishnan, Avinash & Boyles, Stephen D., 2018. "Joint production–inventory–location problem with multi-variate normal demand," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 60-78.
    11. Gatta, Valerio & Marcucci, Edoardo, 2014. "Urban freight transport and policy changes: Improving decision makers' awareness via an agent-specific approach," Transport Policy, Elsevier, vol. 36(C), pages 248-252.
    12. Mohammad Najjartabar Bisheh & G. Reza Nasiri & Esmaeil Esmaeili & Hamid Davoudpour & Shing I. Chang, 2022. "A new supply chain distribution network design for two classes of customers using transfer recurrent neural network," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(5), pages 2604-2618, October.
    13. Zhaobo Chen & Chunying Tian & Ding Zhang & Dongyan Chen, 2020. "Dynamic model of a supply chain network with sticky price," Operational Research, Springer, vol. 20(2), pages 649-670, June.
    14. Shahabi, Mehrdad & Unnikrishnan, Avinash & Jafari-Shirazi, Ehsan & Boyles, Stephen D., 2014. "A three level location-inventory problem with correlated demand," Transportation Research Part B: Methodological, Elsevier, vol. 69(C), pages 1-18.
    15. Chung, Sung Hoon & Kwon, Changhyun, 2016. "Integrated supply chain management for perishable products: Dynamics and oligopolistic competition perspectives with application to pharmaceuticals," International Journal of Production Economics, Elsevier, vol. 179(C), pages 117-129.

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