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Dynamics of Supply Chains: A Multilevel (Logistical–Informational–Financial) Network Perspective

Author

Listed:
  • Anna Nagurney
  • Ke Ke
  • Jose Cruz
  • Kitty Hancock

    (Department of Civil and Environmental Engineering, University of Massachusetts, Amherst, MA 01003, USA)

  • Frank Southworth

    (Oak Ridge National Laboratory, PO Box 2008, Oak Ridge, TN 37831-6206, USA)

Abstract

In this paper, we propose a multilevel network perspective for the conceptualization of the dynamics underlying supply chains in the presence of competition. The multilevel network consists of: the logistical network, the informational network, and the financial network. We describe the behavior of the network decisionmakers, which are spatially separated and which consist of the manufacturers and producing firms, the retailers, and the consumers located at the demand markets. We propose a projected dynamical system, along with stability analysis results, that captures the adjustments of the commodity shipments and the prices over space and time. A discrete-time adjustment process is described and implemented in order to illustrate in several numerical examples the evolution of the commodity shipments and prices to the equilibrium solution.

Suggested Citation

  • Anna Nagurney & Ke Ke & Jose Cruz & Kitty Hancock & Frank Southworth, 2002. "Dynamics of Supply Chains: A Multilevel (Logistical–Informational–Financial) Network Perspective," Environment and Planning B, , vol. 29(6), pages 795-818, December.
    • Handle: RePEc:sae:envirb:v:29:y:2002:i:6:p:795-818
    DOI: 10.1068/b12864
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    References listed on IDEAS

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    1. Nagurney, Anna & Dupuis, Paul & Zhang, Ding, 1994. "A Dynamical Systems Approach for Network Oligopolies and Variational Inequalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 28(3), pages 263-283, September.
    2. Stadtler, Hartmut & Kilger, C., 2000. "Supply chain management and advanced planning: concepts, models, software and case studies," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 4691, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. 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.
    4. Anna Nagurney & Ding Zhang, 1997. "Projected Dynamical Systems in the Formulation, Stability Analysis, and Computation of Fixed-Demand Traffic Network Equilibria," Transportation Science, INFORMS, vol. 31(2), pages 147-158, May.
    5. D. Zhang & A. Nagurney, 1997. "Formulation, Stability, and Computation of Traffic Network Equilibria as Projected Dynamical Systems," Journal of Optimization Theory and Applications, Springer, vol. 93(2), pages 417-444, May.
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