IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v12y2024i2p313-d1321514.html
   My bibliography  Save this article

Complex Characteristics and Control of Output Game in Cross-Border Supply Chains: A Perspective of Inter-Chain Competition

Author

Listed:
  • Feng-Jie Xie

    (School of Modern Posts, Xi’an University of Posts and Telecommunications, Xi’an 710061, China)

  • Lu-Ying Wen

    (School of Modern Posts, Xi’an University of Posts and Telecommunications, Xi’an 710061, China)

  • Si-Yi Wang

    (School of Modern Posts, Xi’an University of Posts and Telecommunications, Xi’an 710061, China)

  • Yong-Fei Li

    (School of Modern Posts, Xi’an University of Posts and Telecommunications, Xi’an 710061, China)

Abstract

In this paper, an output dynamic game model of intertwined supply chains operating in two different countries is established. The Nash equilibrium point of the model and its stable region are obtained using nonlinear dynamic principles. The complex properties of the system, such as stability, period-doubling bifurcations, and chaos, are investigated using numerical simulations. Our results suggest that the level of output and the system’s profits undergo bifurcation and chaos with an increase in the output adjustment speed. An interesting phenomenon occurs in that higher tariffs lead to the expansion of the stable range of the supply chain in the product-exporting country. The chaotic behavior of the system is sensitive to the value of the initial level of output. In supply chain competition, each supply chain firm should make suitable adjustments to the speed of output. To maintain the stability of domestic markets, excessive tariffs should be avoided. It is essential that each supply chain firm evaluates the potential impacts of different initial output values when making initial decisions. Using the method of delayed feedback control, the chaotic behavior of the system can effectively be controlled. These findings offer valuable and novel insight into inter-chain competition in supply chain networks.

Suggested Citation

  • Feng-Jie Xie & Lu-Ying Wen & Si-Yi Wang & Yong-Fei Li, 2024. "Complex Characteristics and Control of Output Game in Cross-Border Supply Chains: A Perspective of Inter-Chain Competition," Mathematics, MDPI, vol. 12(2), pages 1-18, January.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:2:p:313-:d:1321514
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/12/2/313/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/12/2/313/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhang, Shuguang & Dan, Bin & Zhou, Maosen, 2019. "After-sale service deployment and information sharing in a supply chain under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 279(2), pages 351-363.
    2. Li, Mengmeng & Mizuno, Shinji, 2022. "Dynamic pricing and inventory management of a dual-channel supply chain under different power structures," European Journal of Operational Research, Elsevier, vol. 303(1), pages 273-285.
    3. Feng, Pingping & Zhou, Xiaoyang & Zhang, Ding & Chen, Zhaobo & Wang, Shouyang, 2022. "The impact of trade policy on global supply chain network equilibrium: A new perspective of product-market chain competition," Omega, Elsevier, vol. 109(C).
    4. Fang, Yaner & Shou, Biying, 2015. "Managing supply uncertainty under supply chain Cournot competition," European Journal of Operational Research, Elsevier, vol. 243(1), pages 156-176.
    5. Nagurney, Anna & Besik, Deniz & Dong, June, 2019. "Tariffs and quotas in world trade: A unified variational inequality framework," European Journal of Operational Research, Elsevier, vol. 275(1), pages 347-360.
    6. Yuan, Xiaoyong & Bi, Gongbing & Fei, Yalei & Liu, Lindong, 2021. "Supply chain with random yield and financing," Omega, Elsevier, vol. 102(C).
    7. Zhang, Ding, 2006. "A network economic model for supply chain versus supply chain competition," Omega, Elsevier, vol. 34(3), pages 283-295, June.
    8. Wang, Sujuan & Hu, Qiying & Liu, Weiqi, 2017. "Price and quality-based competition and channel structure with consumer loyalty," European Journal of Operational Research, Elsevier, vol. 262(2), pages 563-574.
    9. 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.
    10. Raza, Syed Asif, 2018. "Supply chain coordination under a revenue-sharing contract with corporate social responsibility and partial demand information," International Journal of Production Economics, Elsevier, vol. 205(C), pages 1-14.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ma, Jun & Nault, Barrie R. & Tu, Yiliu (Paul), 2023. "Customer segmentation, pricing, and lead time decisions: A stochastic-user-equilibrium perspective," International Journal of Production Economics, Elsevier, vol. 264(C).
    2. Feng, Pingping & Zhou, Xiaoyang & Zhang, Ding & Chen, Zhaobo & Wang, Shouyang, 2022. "The impact of trade policy on global supply chain network equilibrium: A new perspective of product-market chain competition," Omega, Elsevier, vol. 109(C).
    3. Hu, Xiaowei & Li, Peng, 2022. "Relief and stimulus in a cross-sector multi-product scarce resource supply chain network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    4. Meng, Qingfeng & Li, Zhen & Liu, Huimin & Chen, Jingxian, 2017. "Agent-based simulation of competitive performance for supply chains based on combined contracts," International Journal of Production Economics, Elsevier, vol. 193(C), pages 663-676.
    5. 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.
    6. Isa Feyzian-Tary & Jafar Razmi & Mohamad Sadegh Sangari, 2018. "A variational inequality formulation for designing a multi-echelon, multi-product supply chain network in a competitive environment," Annals of Operations Research, Springer, vol. 264(1), pages 89-121, May.
    7. Zhang, Ting & Wang, Yulan & Shen, Bin & Prak, Dennis, 2023. "Welfare-maximizing tariff versus trade-surplus-maximizing tariff: Impacts on multinational firm competition," International Journal of Production Economics, Elsevier, vol. 264(C).
    8. Anna Nagurney & Deniz Besik & Ladimer S. Nagurney, 2019. "Global supply chain networks and tariff rate quotas: equilibrium analysis with application to agricultural products," Journal of Global Optimization, Springer, vol. 75(2), pages 439-460, October.
    9. Jin Li & Xiaodong Yang & Victor Shi & Gangshu (George) Cai, 2023. "Partial centralization in a durable‐good supply chain," Production and Operations Management, Production and Operations Management Society, vol. 32(9), pages 2775-2787, September.
    10. 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.
    11. Guo, Yuhan & Yu, Junyu & Allaoui, Hamid & Choudhary, Alok, 2022. "Lateral collaboration with cost-sharing in sustainable supply chain optimisation: A combinatorial framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    12. Zhaobo Chen & Chunxian Teng & Ding Zhang & Jiayi Sun, 2016. "Modelling inter-supply chain competition with resource limitation and demand disruption," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(7), pages 1644-1658, May.
    13. Yu, Yugang & Han, Xiaoya & Hu, Guiping, 2016. "Optimal production for manufacturers considering consumer environmental awareness and green subsidies," International Journal of Production Economics, Elsevier, vol. 182(C), pages 397-408.
    14. Nagurney, Anna, 2010. "Optimal supply chain network design and redesign at minimal total cost and with demand satisfaction," International Journal of Production Economics, Elsevier, vol. 128(1), pages 200-208, November.
    15. 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.
    16. Wang, Qingwei & Zheng, Meimei & Lee, Ka-Man & Shi, Xiaoqian & Shen, Yichi & Pan, Ershun, 2024. "Optimal product and after-sales service decisions considering risk attitudes under price-dependent uncertain demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).
    17. Anna Nagurney, 2010. "Formulation and analysis of horizontal mergers among oligopolistic firms with insights into the merger paradox: a supply chain network perspective," Computational Management Science, Springer, vol. 7(4), pages 377-406, October.
    18. 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.
    19. Yuxiang Yang & Zuqing Huang & Qiang Patrick Qiang & Gengui Zhou, 2017. "A Mathematical Programming Model with Equilibrium Constraints for Competitive Closed-Loop Supply Chain Network Design," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(05), pages 1-31, October.
    20. Xiaowei Hu & Peng Li, 2021. "Relief and Stimulus in A Cross-sector Multi-product Scarce Resource Supply Chain Network," Papers 2101.09373, arXiv.org, revised Nov 2022.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:12:y:2024:i:2:p:313-:d:1321514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.